How Can I Create Wealth If I Can't Buy a House?

This post is presented in partnership with Zuper.

If you're a millennial and you love your smashed avocado and large lattes, then the most traditional method of creating wealth—buying a house that you can sell at a greater value—is not quite within your grasp due to Australia's tough housing market.

But you still have plenty of options when it comes to chasing paper! Student Edge asked Jess Ellerm, the CEO of new super startup Zuper, to talk us through some outside-the-box ideas, like uncovering your entrepreneurial side through side hustles and learning the fundamentals of investing via Disney.

Monetise your side hustle.

Everyone always says you should find what you love doing and make a career out of it, but it’s not always that simple. Some of us like lazing around and watching Netflix which, last we heard, isn’t the most lucrative career path. Still, let’s say you’re a bit of a creative and you make music or art in your spare time. Why not sell it? Suck at art but you’re a really handy person? Dedicate yourself to Airtasker on the weekends. Are you bad at everything but know your local city really well? Share those experiences with tourists on Airbnb. When you consider these and the entire range of freelancing and tutoring opportunities out there, it's really a no-brainer.

"Marketplaces are making side hustles so much easier," Jess explains.

"Lots of people start out doing a side hustle alongside their regular job, in the evenings or weekends. For some people, that can grow into a full time business opportunity. And that's where you have a serious opportunity to convert your intellect and sweat into real long term gains."

It’s important to understand that while the gig economy doesn’t always offer employees the best in terms of workers' rights, they are great for taking out the hassle of self-organised side hustles.

"If you do earn some money on the side," Jess adds, "make sure you factor in super when deciding what to charge. You can add this money into your super by BPAY yourself, pretty easily."

Keep that dorky memorabilia.

Investing sounds like something a middle-aged businessperson should be more concerned with. However, you might’ve already invested in some household products that have actually appreciated without even realising.

Let’s say, like most children in Australia, you went through a huge Disney phase where you pushed your parents into purchasing a sizeable collection of Disney DVDs or videos. Did you know that Disney creates an intentional shortage with these releases by placing a few of these films in the "Disney Vault" for years (sometimes, decades)? If you own one of these dusty DVDs or videos, check what they're selling for online and you might make yourself quite a profit.

Or, in a more extreme case, imagine if you'd saved a packet of the world's most coveted condiment: 1999's Mulan-themed Szechuan sauce from McDonald's. Some of those lucky owners have made nearly $US20,000 from a seemingly ridiculous item.

This concept is not too dissimilar from the basics of investing: buying assets at a discounted rate and then selling them once they've begun to appreciate. You're basically learning Economics 101 without any of the scary terms.

"If you're out there looking at different companies to invest in, to buy shares [in], you want to buy low and sell high," Jess explains.

"Getting familiar with how that model operates with something that you're really familiar with, which has no financial jargon associated with it, is a great principle to take into investing."

Invest in you.

At the end of the day, investing in yourself is the most important investment you'll make.

Jess explains that due to changes in the job market, you will likely change your job (and maybe even your career) multiple times in your life. Because of this, she encourages expanding your skillset through continued education, adding to your repertoire a range of abilities that will be important in the future job market (think coding and creative skills).

"You should always be thinking 'How do I continuously re-invest in myself?' and then 'How do I make sure that's reflected in the salary I'm earning?'" Jess explains.

This will ensure you're always employable and may even make you eligible for higher-paying jobs. Earning more money means employers will need to contribute more to your super basket, and you'll have a higher chance of having spare cash each month to voluntarily add to your money reserves.

"Every pay increase makes a huge difference on your super, especially the earlier you can get them," Jess says.

"A couple of extra 20, 30, 40 or 50 [dollars], however much matches your budget, [if you start] to put that away, you might get to your later 20s and be lightyears ahead of your contemporaries.

"You should always be thinking about how you can maximise your earning potential." 

Do you know where all your super is? Or what it’s invested in? With the Zuper app everything is visible and controlled by you. Check balances, payments, and other cool stuff in real time, anytime. Find out more at zuper.com.au

Header Image: 20th Century Fox