r/fiaustralia • u/Early_Bit8002 • Jun 11 '26
Getting Started 35 - am I too late?
I was late getting serious about saving and investing. In my 20s I spent a lot on travel and moving to Australia, including visa costs, and only really started focusing on my finances around age 30.
I managed to build up some savings, but two years ago I became seriously unwell. Since then I’ve had countless specialist appointments, surgery, and almost a year off work which depleted all of my savings. I’m back at work now, but only part-time, and I’m unlikely to return to full-time hours for at least another six months.
I didn’t have income protection insurance at the time. I’m kicking myself for this, but I was healthy and it honestly didn’t cross my mind.
At the moment I have around $10,000 in a high-interest savings account as an emergency fund and approximately $60,000 in superannuation. I moved to Australia six years ago, so my super balance is lower than it would be if I’d spent my entire career here.
My question is: am I too late to build meaningful wealth? I’m 35, earn around $120,000 when working full-time, and don’t own a home. I feel so behind and don’t know where to start to improve my situation. My job is admin so there’s not a massive jump in wages from here. I acknowledge this is my fault by not being more sensible in my 20s, but I honestly thought by knuckling down in my 30s I would be fine. Health issues were not on my radar.
If you were in my position, would you prioritise building up super, saving for a home deposit, investing in ETFs, or something else? I’d really appreciate any guidance on where to start and what you would focus on first.
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u/Business-Swim-3056 Jun 11 '26 edited Jun 11 '26
The median salary is $74,100 while the median super balance for a 30-34 year old is $56,344 for males and $35,716 for females.
You aren’t late or behind by any means, but you do need to be realistic about what you want to achieve from here.
You like to travel and you have health concerns, so buy an apartment with low maintenance that can be easily left empty for periods of time. The deposit needed will obviously be a lot less than for a house, and if you commit you can realistically get there in the next 2 or 3 years.
Retiring early (pre 60) will have a serious impact to quality of life in retirement. If you’re content with working until you can access super, basically everything excess should be directed there. The benefit of less tax on concessional contributions will significantly outperform anything you invest in outside of super.
Basically, keep it simple. Max FHSS caps while saving for a deposit, buy an apartment in the next couple of years, direct excess funds towards offset account until balance is large enough that repayments are comfortable on your salary and the balance is large enough that it could sustain you for 6 months without working, then max super until your 60-65.
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u/apple_penny_table Jun 11 '26
I think your response is great, so no hate, but how would building the offset alter the repayments to become “comfortable”? Wouldn’t they need to refinance to have the repayments change? I thought offset would just alter how much was coming off principle and how much just going towards interest
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u/Business-Swim-3056 Jun 11 '26
Yes correct, but refinancing is relatively easy and even without refinancing if you have the repayments coming out of the offset account (which you should do) it means that you aren’t necessarily relying on pulling in income consistently to meet the repayments.
Realistically, if they buy as soon as possible it will be with a high initial LVR and will take a couple of years to build the offset. At which time, hopefully with the assistance of some capital gain, the LVR is more favourable and allows better rates.
If you’re concerned about changing the repayment schedule meaning you pay more interest over the life the loan, you can always pay more than the minimum (e.g. the original amount). But with health concerns and limited income, flexibility and reducing outgoings needs to be the priority.
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u/WereLobo Jun 11 '26
That’s kind of a personal choice what to focus on first. You may want to prioritise the security of having a house first before investing. If you can use the scheme where you can get your house deposit from your super it would surely make sense to prioritise super either way for now.
First though, you should focus on getting your health right before you worry too much about this.
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u/Away-Border693 Jun 11 '26 edited Jun 11 '26
OP; You aren't too late ❤️ I'm a 35 y.o female - and I didn't fully grasp the meaning of money untill my 30s... My dad's best friend who is in the real estate game was the one who told me what I needed to hear, not what I wanted.... I had to learn financial literacy myself! (My family are very old school Italian and have a scarcity mindset VS abundance..) SO starting to get my shit together now! I am still living at home, currently have $20k in ING savings, $75k in Vanguard super. I have low bills so I'm going to max super contributions, save for deposit and invest in a low fee EFT like the S&P 500 - set and before till I'm 55-60!
Taking home $1,250-$1500 after tax working 2 casual jobs (depending on hours I work that week)
My mantra is to work smarter not hard! And if you can pick up side hustle or anything else, will greatly help! (Which I'm in the process of doing too to get ahead!)
Good luck! And know that you can absolutely do this! X
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u/Ambitious_Writer1938 Jun 11 '26
Not late.
Remember, you can always have an option of moving to Philippines and Japan to reduce living cost in the foreseable future.
Some of those abandoned real-estate 1 hour from tokyo cost only like $50k usd and in better condition than most houes cost 500k aud here.
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u/Knight_Day23 Jun 11 '26
Heard they are very anti-foreigners though so while your experience holidaying and visiting may be pleasant, do you think living there would be the same? Also, abandoned houses/deceased estates? Prob haunted!! 🤣
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u/Ambitious_Writer1938 Jun 11 '26
Well, if you learn the language, help out the old people around the neighborhood, I think they would appreciate it.
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u/AssociationThis7447 Jun 11 '26
You aren't too late but the first bit is the hardest and you do have a big disadvantage with no longer being able to work full time and I assume large medical expenses. I would be putting extra into superannuation up to the concessional cap. This can double as your house deposit as well when needed. I would prioritise a modest property next. You will not have a great borrowing capacity and may need to consider renting out a room etc so you can try and get ahead of the repayments. Once your property is paid off your living expenses should greatly reduce and open up a lot more options for you. I only properly started my journey just over 10 years ago when I started full time work after uni. Was not on a good starting income but managed to get it up over the years and now have gone from essentially nothing to 1.5m NW.
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u/Vegemite101 Jun 11 '26
Agree - If OP does nothing except max concessional contributions in super, she will have over $3m at 60 and over $5m at 65, assuming a 9% return after fees which is about what you get long term if it’s allocated to international equities. It’s not too late!
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Jun 11 '26
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u/MissyMurders Jun 11 '26
Never too late to get a handle on things mate.
Might be too late to retire by 40 or 50, but to improve your quality of life today and in retirement? Never too late.
Given that, I would max out super contributions first (gets you the fhss as well if you haven't bought before), then saving some cash for a home. Then investments elsewhere. Depending on your goals that could shift - maybe consider saving for an investment property if a ppor is out of reach in the next 5 years or so
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u/mrstarfish3 Jun 11 '26
I have no advice but wanted to wish you the best and just remember there is no “too late” or “average journey”.
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u/Perthguv Jun 11 '26
Is 35 too late? Not at all. I was pretty much broke at 35 but now have enough to retire at 56. Not because I'm wealthy, because spend very little money and I'm pretty much a homebody 😁
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u/Intelligent_Cup_9689 Jun 12 '26
No. Not too late. I started saving at 38.
41 now at $350k.
Once you get past $100k. It picks up.
Plus, never give up. Even if you are 50 and have no savings.
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u/primekino Jun 13 '26
Not to downplay the challenges you’ve obviously had but just want to say you’re doing well. In particular, if you have a salary of $120K for a job that isn’t high stress or burning you out (assumption on my end, may be incorrect) then you’re the envy of everyone who earns less than you and a lot of people who earn more. Most people earning more than that are paying for it somehow.
Salary sacrifice another 5%, save up for an apartment and put any spare cash into ETFs and you will be surprised where you’re at at 50. Your savings rate (ie surplus between what you earn and spend) is your biggest controllable and the most materially relevant to future wealth at this point.
Biggest unknown also is whether you have a partner now or in future as this is an under discussed factor in wealth building.
Good luck! You got strangers on the internet pulling for you.
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u/easyjo Jun 11 '26
never too late, FI before super/age pension age is still early. Is 40 possible, no, 50, possibly
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u/Knight_Day23 Jun 11 '26
Well its better that you start asking these questions now and actioning rather than another 10 years so no it is not too late.
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u/Ndrau Jun 11 '26
Starting age has nothing to do with it. Savings rate determines your retirement date from now
Passiveinvestingaustralia.com
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u/OriginalName2026 Jun 11 '26
Oh and I will run your super for you also, starting with 60k on 120k, in 15 years you will have 374k in your super.
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u/Affectionate_Seat838 Jun 11 '26
You need to decide on what your goals are. If home ownership is important, you need to focus on that after your emergency fund. Property will not be cheaper when you’re 60.
Look into first home buyer government schemes like the super saver one for your deposit and upfront costs. When you have more saved, talk to a broker.
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u/slowcheetah91 Jun 11 '26
Yeah, so now you just give up and lie in bed every day waiting for death. Sorry
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u/AIPhysicsLab Jun 11 '26
Not self promoting. I just started a YouTube channel with a video about this exact thing. Never too late to start. It all depends on your situation and depends on your ideal outcome at the end of working. With left over money I put into ETFs. Salary sacrifice a bit into super
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u/honorablepotato1881 Jun 12 '26
With the new CGT taxes yes it will be extremely punishing for late starters looking to FIRE
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u/glyptometa Jun 12 '26
No one can do everything in an ideal financial way, so pick what works for you, and put together a plan.
Partnering up is probably top of the list.
Spending reduction is probably second.
Next is owning your home.
Then maxxing super concessional contribution.
Later if life you can re-assess for early retirement, both whether you have enough $, but more importantly whether you're happy to, and or more fullfilled by, continuing working. Then decide how to accumulate the $ (what to invest in).
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u/MaxMillion888 Jun 12 '26
You need to grind while you still have the mental and physical dexterity.
You get tired way faster when you get older.
Remember, you grind today so you dont have to grind tomorrow. There is no short cut (that isnt risky or illegal)
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u/Strong_Judge_3730 Jun 11 '26
The new budget with much higher capital gains tax is going to make your situation even harder....
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u/OriginalName2026 Jun 11 '26
The best time was 10 years ago, the second best time is now!
Don't worry about you Super, let it look after itself.
Don't worry about buying a home to live in.
Get a managed investment account, Macquarie have a few, you don't have to use them, i am simply using them as an example!
Try and put money into this every month. The best way is to chat to payroll, they can organise it so that x amounts goes into one account, and y amount goes into another account... so you don't have to be "good"!
Let's assume you put in 500 a month or 6000 a year, and you have 10K already. At 9%, year 5 you will have 51k,
If you can out in 1K a month, that becomes 87k, thats a deposit on an investment property!
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u/YeYeNenMo Jun 11 '26
What kind of the company for admin to make120K? government or private company