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Personal Income Spending Flowchart — Australia

Step 1: Track Spending, Set Goals
  • Create a detailed budget to track income vs expenses
  • Set realistic financial goals for short, medium and long-term
  • Cover essential expenses including housing, food, utilities and work costs
Step 2: Build Emergency Fund
  • Build a $1k–$2k buffer in a high-interest savings account
  • Grow to 3–6 months expenses stored in HISA or offset account
  • Cover unexpected expenses like job loss, medical bills or car repairs
Step 3: Pay Down High Interest Debt
  • Target debt with ≥15% interest like credit cards and payday loans
  • Use avalanche or snowball method while keeping all minimums paid
  • Finish paying off consumer debt >5% including personal and car loans

Step 4: Implement Your Investment Strategy

Key Decision Points
  • Do you own a home with a mortgage? Consider extra repayments vs offset account vs investing
  • Any major expenses coming up? Save first for home deposit, car, holidays or education
  • Are you saving 15%+ for retirement? Include super contributions in your calculation
  • When do you need the money? Your time horizon (3-5 years vs 7+ years) affects your strategy
Investment Options
  • Boost super contributions with concessional and non-concessional contributions up to caps
  • Invest in broad-based index funds (ETFs) for diversified, low-cost, long-term growth
  • Consider investment property, weighing leverage, tax benefits and liquidity needs
  • Use fixed income like government bonds or term deposits for stability and short-term goals

Value the 1%

Imagine you are living off $2M of investments, withdrawing 100k a year for expenses which increase by 3% each year with inflation.

A 10% return on investment is considered great, but after advisor fees and taxes this could drop to 6%

Over a 40 year period if you had only returned 6% after tax you would be bankrupt, at 8% you have more than trippled your money

Without taking additional investment risk you can reduce your costs, and reduce your tax to achieve an 8% after tax return.

Impact of +1% Return Over 40 Years
6% After Tax

Final: $0

Runs out year 32

7% After Tax

Final: $668k

8% After Tax

Final: $6.5M

The Five Actions for Extra 1% Return

Asset Choice

Choose investments that match your risk tolerance and return objectives. Freedom to invest across all asset classes.

Minimise Costs

Reduce administration fees, management fees, and transaction costs that directly reduce your returns.

Minimise Tax

Use appropriate structures and strategies to minimise tax on investment returns and income.

Asset Protection

Protect your assets from potential risks while maintaining control and access to returns.

Debt Strategy

Optimise debt structure and interest rates to maximise after-tax returns on leveraged investments.