Before You Start

This guide is adapted for Australia and New Zealand from Decent Investing, Joel Lewis’s original guide for US investors.

Before opening a single account or buying a single fund, answer one question: what do you actually want your money to do for you?

Not in vague terms (“be rich,” “retire early”) — in specific ones. What does a great ordinary Tuesday look like for you? Where do you live? What do you spend on without thinking? What have you stopped worrying about?

The specifics matter because they determine which financial decisions actually move the needle for your life, and which are noise.

Focus on What Actually Matters

Not all financial decisions are created equal. Some are worth thousands of dollars per year. Most are worth almost nothing.

High-impact decisions ($0+ lifetime impact):

Your savings rate (what percentage of income you keep)
Getting every dollar your employer and the government put into your super or KiwiSaver (free money)
Your investment fees ($100,000 growing at 8% a year for 30 years ends up about $0 smaller at a 0.75% fee than at 0.03%)
Paying off high-interest debt
Using the right accounts (salary sacrifice into super in Australia, the right KiwiSaver fund and contribution rate in New Zealand)

Low-impact decisions ($3 or less per day):

Whether you buy coffee out
Which streaming services you subscribe to
Generic vs name brand groceries

Both categories might feel like “being responsible with money,” but one group literally determines whether you can retire, and the other determines whether you have an extra $1,000 a year. Focus on the big levers first.

The 85% Solution

The biggest risk in personal finance isn’t picking the wrong fund or missing a tax optimisation. It’s never starting at all.

Analysis paralysis is real. People spend months researching the “best” investment account, the “optimal” asset allocation, the “perfect” time to enter the market — and in the meantime, their money sits in an everyday account earning nothing.

A good plan you actually follow will dramatically outperform a perfect plan you never start:

An 85% optimal portfolio, started today, beats a 100% optimal portfolio started “eventually”
The difference between a good index fund and the best index fund is tiny compared to the difference between investing and not investing
Automating a decent plan removes willpower from the equation entirely

Automate Everything

Willpower is a terrible financial strategy. The most reliable way to build wealth is to remove yourself from the process entirely.

Set it up once, then forget it:

Pay → super or KiwiSaver — your employer pays it in, plus any salary sacrifice (Australia) or your chosen KiwiSaver rate (New Zealand), before you see the money
Pay → everyday account — what’s left covers your bills and spending
Everyday account → investment account — automatic monthly transfer, a few days after payday
Everyday account → savings — automatic transfer for your cash cushion

When saving and investing happen automatically, you don’t have to make a decision every month. You don’t have to feel motivated. The money just moves. This is called behavioural architecture — designing your environment so the right choice is the default.

Name Your Relationship With Money

Everyone has a default pattern with money. Recognising yours helps you anticipate where you’ll get stuck:

The Avoider — doesn’t open statements, delegates everything, finds money conversations stressful. Your risk: inaction. Start small and automate aggressively.
The Optimiser — tracks every penny, researches endlessly, struggles to spend on things that bring joy. Your risk: paralysis and under-living. Set a “guilt-free spending” budget and use it.
The Worrier — anxious about money even when finances are solid, catastrophises normal market drops. Your risk: panic selling. Write down your plan and tape it to your monitor.
The Dreamer — big plans, believes it’ll work out, but rarely follows through on the boring steps. Your risk: all talk, no automation. Set up automatic transfers this week.

None of these are broken. But they each create a different trap. Knowing which one is yours lets you build guardrails around it instead of pretending it doesn’t exist.

Savings Rate: The Number That Matters Most

Your savings rate — the percentage of your gross income that goes towards building wealth (retirement contributions, debt payoff above minimums, investment contributions) — is the single most powerful lever you have.

A rough benchmark: aim for at least 15% of gross income, including your employer’s super or KiwiSaver contributions. In Australia, the Super Guarantee alone is 12% (from 1 Jul 2025), so you may only need a little on top. If you can’t start there, start wherever you can and increase by 1% every time you get a pay rise.

Savings rate	What it means
5-10%	Better than nothing, but you’ll work a long time
15%	Solid baseline for a standard retirement
20-25%	Ahead of schedule, more flexibility
30%+	Early financial independence territory

The exact number matters less than the direction. Going from 0% to 10% is life-changing. Going from 10% to 15% is great. Going from 15% to 15.3% is a rounding error. Focus on the big jumps.