Soon ..we'll show how young adults like Stephanie Watson ... anyone, the clue to getting rich... dead simple.
Peter Switzer, Founder, Switzer Financial Planning says "People who create a budget first of all are on the stepping stones to managing their money more effectively."
Starting from nothing, like Karen Newton. With a debilitating neurological illness, she couldn't work and lost everything. Her saviour - a special loan, no strings attached.
I didn't even have a bed! I got $1,500 to buy a bed and a comfortable chair I desperately needed for the pain I suffer." Said Karen
Karen got the money from No Interest Loan Schemes, NILS, run by community-based groups like Anglicare, neighbourhood welfare centres and the Salvation Army.
The Salvo's Tony Devlin says they're for people struggling on a low income and desperately need home essentials. Repayments are automatically debited from their accounts at an agreed rate, but no interest.
"Things like fridges, washing machines, car repairs, dental or medical procedures and aids. Don't go to a fringe lender that's an important message, come and see us." Said Tony Devlin from the Salvation Army
So how can you make money grow ... and .. the secret to getting rich? Using ASIC's on-line Money HealthCheck quizz, we tested how parents Lorraine and Shawn Swart ... and odd-job worker student Stephanie Watson managed their money.
Lorraine and Shawn and their 2 children have one income, a mortgage, a few thousands dollars in an offset savings account to reduce their home loan principle. So how do they rate money-health-wise?
"We've brought our super over here from the UK. We've put our life insurance in place, got our wills in place...But it would be good to have a better plan to put some more money regularly back into the super now." Said Shawn
Overall ...Shaun and Lorraine rate very well.
"It gives you a little smiley face as to how far you are in terms of whether you're doing really well or probably need some help." Said Lorraine
Stephanie Watson, 24, student working odd-jobs, paying rent, $500 in her savings account, no debts.
"It just reminded me of things that I should keep in the back of my mind day to day like tax, like super, like insurance, the best thing is to just not to tempt yourself, so at the moment I'm not buying magazines or walking into stores or going online and reading travel blogs." Said Stephanie
Stephanie's going well .. but she COULD get rich, easily.
Peter Switzer says just a little can go a very long way.
"If they can find $6 a day they can find about $42 a week across 52 weeks a year just simplifying it it's about $2000. If you put $2000 into super over a 10 year period between the ages of 21 and 30, that will be about $20 000. That then rolls over about 8% and by the time you retire is going to be about half a million dollars. But if you keep doing it from the age of 30 til you retire, that half a million will become a million dollars. By the way Helen, every employee gets 9% if you put that extra amount in there, it guarantees everyone will retire with definitely more than a million dollars." Said Peter Switzer