Introduction

Your 20s are all about firsts—first job, first paycheque, maybe your first car or even your first investment. It’s also the perfect time to start building a strong financial foundation. But where do you start? We’ve compiled the most common questions young Australians ask financial advisors to help set themselves up for a financially secure future.

1. How much should I be saving each month?

One of the top concerns for young adults is figuring out how much to save. A common rule of thumb is the 50/30/20 rule—spend 50% on needs, 30% on wants, and save 20%. But your personal goals might require tweaking that ratio, especially if you’re aiming to travel, buy a home, or pay off debt early.

2. Should I build an emergency fund first?

Yes—an emergency fund is essential. Ideally, aim to save 3 to 6 months’ worth of living expenses. It provides a financial cushion for unexpected events like medical emergencies or job loss, so you don’t need to rely on credit cards or personal loans.

3. Is it better to pay off debt or save?

This depends on the type of debt and the interest rate. Credit card debt should be prioritised, as it often carries high interest. However, for lower-interest debt like student loans (e.g. HECS-HELP), a balanced approach of saving while making regular repayments is often best.

4. How do I start investing with a small amount?

Start small and start early. Thanks to compounding returns, even modest investments can grow significantly over time. Micro-investing apps and exchange-traded funds (ETFs) allow you to begin with as little as $5 to $100. A financial advisor can help you choose a low-cost, diversified strategy tailored to your goals.

5. What’s the deal with superannuation—should I care now?

Absolutely. Superannuation is essentially your retirement nest egg. Starting early allows your super to benefit from decades of compounding growth. Consider consolidating multiple super funds to avoid duplicate fees, and think about making voluntary contributions if your budget allows.

6. How do I manage my HECS-HELP debt?

While HECS-HELP is interest-free, it’s indexed annually to inflation. Repayments are automatically deducted once your income passes a certain threshold. While it’s not urgent to pay off early, understanding how it affects your borrowing capacity (e.g. for a mortgage) is key.

7. Should I get insurance at this age?

Income protection and basic life insurance might be worthwhile, especially if you’re financially independent or supporting others. Insurance through super can be a cost-effective starting point, but it’s not one-size-fits-all. Review your coverage regularly.

8. Should I budget even if I don’t earn much?

Yes—budgeting is about control, not income. Even a simple plan helps you avoid overspending, stay on top of bills, and plan for the future. Digital tools and apps can make budgeting easier and even enjoyable.

9. Is it too early to talk to a financial advisor?

Not at all. In fact, seeking guidance early helps you avoid costly mistakes and take advantage of time—your most powerful wealth-building asset. Advisors can help you set goals, choose the right investments, and develop lifelong financial habits.

10. Should I try to buy property in my 20s?

It depends on your goals, income stability, and location. Property can be a powerful long-term asset, but it’s also a major commitment. Consider rentvesting (renting where you live and buying where you can afford), or building up your deposit while improving your borrowing power.

Final Thoughts

Your 20s are the best time to lay the groundwork for lasting financial health. The earlier you start asking the right questions—and acting on them—the better off you’ll be in your 30s, 40s, and beyond. A qualified financial advisor can help you create a roadmap that grows with you.