We spend hours researching the right flat-screen to buy, the features of the iPhone 6 and can probably track the provenance of the beans in our fair trade coffee all the way back to Ethiopia.

But ask a handful of Australians about their savings and investment strategies, or where their super is parked, and many will draw a blank.

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Founder of Accounting and Taxation Advantage, Melissa Browne, says while Australians are conditioned to make extra mortgage repayments, they are not taught to be good savers and investors.

“I think it is great to pay extra off the mortgage, but I think if you build up equity in your home then you should look at actually doing something with it,” she says.

Of course, you need money in order to invest and the first step is to become good at saving.

Find what you can live without

Learn how to save your money. Photo: Shutterstock

When Ms Browne was a teenager, her financially savvy father taught her about money by setting her up on a line of credit and allowing her to pay him back during an interest-free period.

“I learnt a lot this way about where my strengths and weaknesses were in relation to money,” she says.

It turned her into an exemplary saver, and she advocates her clients cut back on what they can live without – but preserve a few indulgences.

“You need to cut out the things that won’t make that much difference to you,” she says.

“I bring my lunch to work every day but I splurge on a cleaner every week because that makes a big difference to my life.”

Invest your savings

Once you are in a financially strong position, Ms Browne recommends buying an investment property “to diversify your risk” but notes people need to be prepared to hold these properties for at least 10 years to really be successful.

“People could also buy another property through their super fund or draw on some funds to buy some shares,” she says.

“Or you could start your own business or buy an established one. A lot of people are scared of doing things like this, but you just need to make sure you do your research first.”

If you are approaching retirement, Ms Browne is a big fan of salary sacrificing into super, as well.

Buyer beware

Beware the share market. Photo: Shutterstock

Most people choose to diversify a property portfolio with shares, but be wary of too much exposure to the markets.

Independent financial adviser Matthew Ross says many people learned the hard way how volatile the share market can be during the 2008 financial crisis.

“Before the collapse people were thinking they would be able to retire in five years; they got greedy and they didn’t understand risk properly,” he says.

Mr Ross says now is the time for people to re-evaluate their investments to make sure they are not overly vulnerable to a stock market correction.

“I had a client whose super fund had invested 100 per cent in growth stocks and that left him very exposed,” he says.

“No one knows what the market is going to do next year so be very wary of anyone who says they can forecast the share market.”

Long-term prescription

Mr Ross says people should ensure they “thoroughly” understand their investments.

“Review the investments and make sure they make perfect sense to you,” he says.

“And get a second or third opinion from someone you can trust. If you are about to invest hundreds of thousands of dollars of your money, you want to make sure you have interviewed a range of independent financial advisers.”

It is understandable many people are nervous when seeking financial advice, he added.

“Something like 80 per cent of advisers are linked to banks so do a lot of research on the person who you are getting advice from,” Mr Ross says.