So you have just started working in a surf shop, or maybe in a factory manufacturing skateboards and shoes or distributing snowboards for an agent on behalf of one of the snowboarding brands. It is your first job and you love the industry you work in.
Now is the perfect time to start to pay attention to your pay packet.
If you have not taken enough notice of superannuation until now. What should be the first steps for a beginner. The really great news about super is that the earlier you start, the earlier you can afford to retire. Indeed due to the miracle of compound interest, starting early can turbo charge your end result by much more than you realise.
While it may seem a little futile to be putting aside small amounts every week when you are young and on a low income, those little deposits soon add up. With decades of compound interest to come, starting a super account with your very first part – time job is a much more efficient way of saving than trying to top up your balance with much larger sums when you are older and have less time for compound interest to work.
It is much better to save smarter than work harder and the effect can be so dramatic that you could easily beat someone who doubled their much larger super contributions for a decade when they turned 50 just because you started a decade earlier than they did. Say you sock away a relatively small sum of $10,000 in super when you are young and then leave it untouched for 40 years before retiring.
Assuming a 6.5 percent compounding return, that $10,000 would have grown to $31,400 in today’s dollars, not to mention the extra money that subsequent super contributions have added.So starting early with your first job, choosing a super account with low fees and good returns and making sure you pay only for insurance you need is a fantastic way to achieve a stress – free retirement.