Small money moves that can compound over a decade
Written and accurate as at: Oct 06, 2026 Current Stats & Facts
You don’t necessarily need to make dramatic changes to put yourself in a better financial position. Sometimes, the more useful approach is to look for the smaller moves you can make now that have the potential to compound over the years ahead.
Changing jobs or seeking a pay rise
If the goal is to improve your financial situation, your salary is one of the most important levers you can pull. But many of us get comfortable in a role and let the years pass without asking whether we’re still being paid what we’re worth.
It might help taking a longer-term view. Even if you only stand to gain an extra $10,000 by changing jobs, over five years that adds up to an extra $50,000 in gross income. And because pay rises are generally calculated as a percentage of your salary, having that higher base can keep paying off throughout your career. And that’s not to mention the higher super contributions your employer will be making on your behalf.
Of course, you don’t have to be constantly job-hopping. There are legitimate reasons to stay put even though another employer would pay more (good colleagues, culture and commute to name just a few). If your current job ticks all the boxes save for the one labelled ‘pay’, it might be worth researching what comparable roles are offering and making a case for a pay rise instead.
Investing or topping up your super
In the world of finance, you’d be hard-pressed to find a more beloved concept than compounding. This is, to put it simply, the snowball effect at play when your investment returns start earning returns of their own.
When you invest or top up your super, the money you contribute and the returns generated combine to work extra hard for you. Over a long enough period, even relatively small contributions can grow into a meaningful sum.
And when it comes to super, there are additional sweeteners in the form of tax benefits. If you make a before-tax contribution, it will generally be taxed at 15% when it enters your fund, which is lower than most Aussies’ marginal tax rate.
You can make this kind of contribution by salary sacrificing or making an eligible personal contribution and then claiming it as a tax deduction. The latter involves submitting a Notice of Intent form to your fund, either before you lodge your tax return or before the end of the following financial year (whichever comes first).
Slashing debt
If you have debts, it’s tempting to pay the bare minimum and leave it at that. But it might help to shift the way you look at it. The more rapidly you whittle away at your debt, the more interest you save over the life of your loan – and the sooner you can direct that money towards other goals.
Every dollar in interest you don’t have to pay can be thought of as a tax-free earning. Not literally, of course, but in the sense that it’s extra money in your bank account which, unlike income, generally doesn’t attract attention from the ATO.
Just remember that, depending on the type of debt, there might be consequences to getting rid of it. For example, some mortgage lenders charge early termination fees. And if you have an investment loan you could lose a tax deduction you might have otherwise been entitled to claim.
Automating your savings
Time and willpower are often in short supply – especially if you have caring responsibilities or a demanding job – but we fortunately live in a world where a lot of the boring admin tasks can be automated quite easily.
Setting up a direct transfer to your savings account each time your salary hits your account can help you overcome some of the more persistent barriers to saving. What’s more, by moving the money before you have a chance to spend it, you treat your savings as off-limits and only give yourself license to spend what’s left.
The useful thing about automating your savings – like other items on this list – is it doesn’t require you to overhaul your life. The key is taking the necessary steps to put them in place, and then letting time do some of the heavy lifting.
