Are you a young, twenty-something individual, relatively fresh out of high school, college or university kick-starting your career? This new chapter in your life goes hand in hand with also getting your finances going. You don’t want bad habits or debt to steal your youth, happiness and freedom.
You are indeed capable of becoming a good and happy financial steward, especially if you are still in the bloom of youth. According to Matthys Potgieter, spokesperson and debt expert at DebtSafe, these following five tips will help you to get your financially-free future:
Save sooner rather than later
“Prepare your financial position now and you will reap the rewards later,” says Potgieter.
There are various short (holidays or birthdays), medium (car and medical insurance) and long-term (retirement or buying property) savings and investing options available. So why don’t you make use of what works for you? The sooner the better.
Live according to your means
Don’t blast away your ‘start-off paychecks’ in one go. If you spend ‘too much too soon’, you can sit with devastating consequences, like excessive and unwanted debt for years to come.
“Rather prevent this type of ‘financial suffering’ by keeping your monthly budget under control,” says Potgieter.
The non-negotiable emergency buffer
An emergency fund is always a good way to go when it comes to savings. Try high and low to put any amount of money in a savings account. Preparing for those unexpected emergencies can ease your mind and can really help you when you need it.
“An ideal emergency fund consists of two to three months’ salary,” says Potgieter.
Keep your happiness intact
So you are constantly trying to keep up with the Joneses? And you don’t want to show socio-economic or cultural inferiority? It may not be the best idea when you are gathering every penny, juggling to save and barely making ends meet. The way neighbours, friends, family and your fellow colleagues live, has got nothing to do with your lifestyle. And it is best to keep your own happiness in tack.
“Remember: if you splurge and spend on things you want but don’t need, you are slowly making your way to becoming miserable,” mentions Potgieter.
Don’t suffer in silence
Don’t be ashamed if you feel a bit inexperienced when it comes to managing your finances. Professional help is around every corner, so voice your concerns, goals and listen to advice.
You can make use of financial planners, a banker and friends or family in the financial field.
“Be prepared to find the most suitable financial assistance for your financial queries, needs or situation,” advises Potgieter.
Don’t let your finances snip your happiness and allow you to become old before your time. Take the above tips into account and enjoy your journey to financial independence.