Reaching a financial goal is rarely a straight line—most of us spend a lot of time ‘near the money’, that crucial zone where you’re close, but not quite at your target. Whether you’re buying property, topping up your super, or about to lock in an investment, understanding the dynamics of being near the money can make the difference between success and missed opportunity.
What Does ‘Near the Money’ Mean in Australian Finance?
In the world of finance, ‘near the money’ is more than just a technical term. Originally borrowed from options trading, where it refers to contracts whose strike price is close to the current market price, it’s become a catch-all for any financial situation where you’re on the verge of a key milestone or decision.
For everyday Australians, this could mean:
- Your savings are just shy of a house deposit as property prices fluctuate.
- Your superannuation balance is almost at your desired retirement threshold.
- You’re eyeing an investment or loan that’s just within reach, but not quite there yet.
With cost-of-living pressures and market volatility continuing into 2025, more Australians are finding themselves ‘near the money’ and needing to make smart, sometimes tough, decisions.
Key Scenarios: How Being ‘Near the Money’ Impacts Your Choices
Let’s break down how the ‘near the money’ concept plays out in some of Australia’s most common financial situations:
1. Property: Chasing the Deposit Gap
Australian house prices are projected to rise again in 2025, with CoreLogic reporting national median values up 5% year-on-year. Many buyers are close to their deposit targets, but weekly price movements can quickly put a property out of reach.
Strategies to consider:
- Government Schemes: The expanded First Home Guarantee now supports more buyers with as little as 5% deposit, while the Family Home Guarantee helps single parents.
- Deposit Bonds: These can help bridge the gap if you’re awaiting funds or need to show proof of deposit.
- Reassess Your Target: Consider widening your search area or looking at off-the-plan purchases to lock in today’s prices.
2. Superannuation: Nearly Ready for Retirement
As of 2025, the Superannuation Guarantee rate has risen to 12%, helping Australians build balances faster. But what if you’re almost at your dream retirement figure, yet still short due to market swings or inflation?
What to do:
- Catch-Up Contributions: If you have unused concessional cap space from previous years, make extra contributions now.
- Transition to Retirement (TTR) Strategies: Access part of your super while still working if you’re over preservation age, smoothing out income without a full drawdown.
- Downsizer Contributions: Australians aged 55+ can contribute up to $300,000 from selling their family home, boosting super without affecting contribution caps.
3. Investments: When the Market Moves Against You
For investors, being ‘near the money’ often means watching a share, ETF, or managed fund hover just below your target price—tempting, but not quite enough to trigger a buy or sell.
Actionable tips:
- Set Limit Orders: Use your brokerage platform to automate purchases or sales at your desired price point.
- Review Your Thesis: Has anything changed fundamentally? Don’t let FOMO (fear of missing out) or market noise push you into a rushed decision.
- Tax Considerations: Remember, end-of-financial-year (EOFY) tax rules for capital gains and losses may influence your timing—especially with changes flagged for 2025 in the Federal Budget.
2025 Policy Updates Affecting ‘Near the Money’ Decisions
The Australian financial landscape is constantly evolving. For those ‘near the money’, recent and upcoming changes can be the nudge you need:
- Superannuation: The higher SG rate and broader eligibility for downsizer contributions make it easier to catch up late in your career.
- Property: The Albanese Government’s Housing Australia Future Fund is set to increase affordable housing supply, potentially stabilising prices in some markets.
- Taxation: The Stage 3 tax cuts, taking effect from July 2024, may boost take-home pay and help you reach your savings or investment goals sooner.
Making the Leap: How to Cross the Finish Line
Being ‘near the money’ is a time for action, not just waiting. Here’s how to turn your proximity into achievement:
- Re-evaluate your goals: Are your targets still realistic given current economic conditions?
- Leverage professional advice: An adviser can help you optimise contributions, investments, or borrowing strategies.
- Stay nimble: The last stretch is often the hardest—be ready to adapt as rules, rates, or markets shift.
