If you’re interested in buying a home, an effective tool to help you save more efficiently is the First Home Super Saver Scheme. By making voluntary contributions to your super fund, you can reduce tax on your income, and receive interest on your contributions, then draw the funds out later when you’re ready to buy a home. At present, the scheme allows you to withdraw voluntary contributions of up to $15,000 per year, up to a total of $50,000.

Salary sacrificing is a great way to accumulate wealth for your retirement; it reduces the amount of tax you pay, and invests funds in super where they will benefit from years of compounding investment returns. However you may not be able to access these funds for some time, so salary sacrificing too much can leave you in a vulnerable position in the near term. You should also consider that salary sacrifice may be an effective way to fund premiums for insurance held in super. Each person is unique and determining an appropriate level of salary sacrifice will depend on your circumstances. Learn more about how salary sacrifice works here.

Building wealth through investing carries a certain amount of risk, and you should be aware that higher returns are generally correlated with higher risk. Depending on your investment timeframe, different types of risk may be easier to manage, so building an investment portfolio that matches your needs is crucial. Another important aspect of wealth creation is tax; you can accumulate wealth faster by using tax-advantaged investments, such as super or investment bonds, but this will also impose restrictions on your access to those funds. Consider your investment timeframes and goals, and an adviser can help you find the investment vehicle that best suits you.

Both passive and active funds can have certain advantages. Index funds tend to have lower fees, due to the low maintenance required, but will correlate with volatility in the market. An active fund may aim to counteract volatility in the market and seek opportunities to further increase your wealth, but will generally charge higher fees for the work involved. Keep in mind that not all options on the market fall neatly into these two categories; there are hybrid products that use a combination of approaches to achieve a ‘best of both worlds’ solution. Ultimately, deciding the best investment option for you will depend on your investment time frame and goals. Read more about the difference between active and passive funds here.

Many people associate property with high investment returns; property markets tend to experience good capital growth, plus an investment property can be rented out for additional income. There are also tax considerations; interest payments on a loan associated with an investment property can be tax deductible, and capitals gains on sale of the property are also discounted. But property investment also carries many risks. Your property is prone to weather events that cause damage and loss of value, and the illiquid nature of property means you won’t be able to access a portion of your investment if needed. Renting out the property can involve extra work that you may not have time for, and tenants may cause damage to the property as well. It’s important to remember that the high returns associated with property investment are in part due to the high degree of leverage involved; that is, you are using borrowed money to make the investment. Leveraging is a high risk strategy and you should make sure you understand these risks before making such an investment. Read more about the pros and cons of investment properties here.