Building wealth isn't one big goal. Here's how thinking in short, medium and long-term buckets can make money easier to manage.
In partnership with
All information contained in this article is general advice only.
Did you wake up one day and suddenly half your friend group has signed up to run the next city marathon?
Yup, it's not just you.
But strangely enough, marathons and super actually have a lot in common.
Most people don't start seriously training for their marathon until there's a race date locked in.
And many Australians treat super the same way.
It sits in the background for years until retirement starts creeping into view.
But everyone knows preparing for a marathon at the last minute is a risky move.
Super is the same - building long term wealth is better when you have more time on your side.
For many Australians, super eventually becomes one of their largest assets outside the family home.
The Association of Superannuation Funds of Australia (ASFA) recommends a superannuation balance of $630,000 (single person) or $730,000 (couple) for a comfortable retirement.
But saving that much money can feel daunting especially when you’re young and have other financial goals you also want to achieve.
One way some Australians choose to think about their finances is through separate buckets.
This is your financial safety net.
It’s designed to provide security if your car breaks down, you lose your job, or an unexpected expense pops up.
It also helps you achieve goals coming up in the near future - like travelling or buying a new car!
For short term wealth, your money is often sitting in high-interest savings accounts, offset accounts or emergency funds.
The goal isn't necessarily maximum returns - it's having money available when life happens.
This bucket is often focused on growth and opening up new doors.
For example, you might be saving to buy property, becoming financially independent, or planning a year off work to travel or start a family.
Unlike your short term wealth, this part of your portfolio has more time to ride out market ups and downs so it might make sense to have money invested while you’re building towards these goals.
Outside of cash savings, medium term wealth may also include investments like shares, ETFs or property.
While growth is important, you’ll likely need to draw down this money before retirement so this should be factored into your investment decisions too.
This is where super sits.
Since you won’t be touching this money for decades (literally), investors can leverage time to build long term wealth.
The best part about having more time is that your contributions and investment returns get more time to compound.
Many Aussies can make the mistake of assuming ‘super can wait’ since retirement can feel so far away, but (newsflash) compounding doesn't work that way.
Your 20s and 30s are often some of the most valuable years you will ever have for investing.
Morningstar shows how an additional $10,000 p.a. of voluntary contributions in your 30s could almost double the super you retire with, compared to starting additional contributions in your 50s. Of course, the impact of voluntary contributions will vary depending on investment returns, fees, contribution levels and personal circumstances.
And these effects can be further compounded if you actually pay attention to where your super is invested, the fees you’re paying and your super asset allocation.
The tricky part is, most people aren't focused on just one bucket at a time.
You might be building an emergency fund while saving for your first property.
Investing in ETFs, while paying down a mortgage. Or trying to book a holiday while also putting money aside for your future.
While each bucket serves a different purpose, they're all working towards the same thing: helping you build long-term wealth.
Some people use budgeting frameworks such as the 50/30/20 rule as a starting point, although what is appropriate will depend on individual circumstances.
Usually the 50/30/20 rule refers to allocating your income:
But you could break this down even further and split the last 20% savings into its own 50/30/20 where:
Or find a split that works for you!
In Australia, from the 30 June 2026, the government already requires employers to pay 12% super guarantee to their PAYG employees, but if you wanted to really lock in, we’ve covered multiple strategies to voluntarily grow your long term wealth:
When super forms part of a broader wealth strategy, flexibility matters.
Netwealth Super Accelerator can give members access to a wide range of investment options, including shares, ETFs and managed funds. Before deciding whether Netwealth Super Accelerator is right for you, consider the PDS, TMD and your personal circumstances.
This may allow investors to take a more active role in how their retirement savings are invested.
Because while super is designed for retirement, the decisions that shape your retirement are made long before you get there.
Flux disclaimer:
The Information contained in this article is general information. It does not constitute legal, tax, credit or financial advice and is not tailored to an individual’s circumstances. You should consider your own personal circumstances and seek advice from your professional advisers before making any decisions that may impact your financial situation.
Netwealth disclaimer:
All information contained in this article is general advice only. It does not constitute legal, tax, credit or financial advice and is not tailored to an individual’s circumstances. You should consider your own personal circumstances and seek advice from your professional advisers before making any decisions that may impact your financial situation.
Netwealth Superannuation Services Pty Ltd issues Netwealth Super Accelerator. Netwealth Investments Limited issues the Netwealth Wealth Accelerator Multi-Asset Portfolio Service. Information contained within this post is of general nature only. Consider whether the products are appropriate for you and seek advice where required. To help you decide, read the PDS’s or IDPS’s Guide and TMD’s available at Netwealth - Super & Investment Solutions - Investors & Wealth Professionals.
The Information contained in this article is general information. It does not constitute legal, tax, credit or financial advice and is not tailored to an individual’s circumstances. You should consider your own personal circumstances and seek advice from your professional advisers before making any decisions that may impact your financial situation.
Sign up for Flux and join 100,000 members of the Flux family
