Financial habits young people must live by

The transition into post-graduate life can be overwhelming and managing money and personal finances may seem like the biggest challenge that young professionals are never prepared for.

Andiswa Gqwaru from Momentum says it is important for young professionals to take care of their finances.

“A large number of students and young people entering the workforce for the first time lack basic money management principles. If not addressed, this can lead to missed opportunities.”

Together with MFP franchise owner and financial planner Ernerst Zamisa, Gqwaru has come up with the following tips to help establish good money habits. These include:

Create a realistic budget

The first step in the budgeting process is to find out how much money is left after tax and other deductions and then determining what additional expenses will affect how much you have left at the end of the month.

Save for a rainy day

According to Zamisa, “compound interest is the ninth wonder of the world. The sooner you start saving, no matter how little, the better off you will be in the long run.”

Avoid debt

Having a budget will help you settle your debt  quicker. “Although a credit card can help you build a credit profile, you should use it responsibly and make sure that you have a plan in place to pay back your student loans, personal loans and credit card debt,” says Zamisa.

Invest in your retirement

When you start your first job, retirement may seem like an eternity away. “When you are young, contribute as much as you can afford towards a retirement annuity. Every little bit you put away will grow with interest, and you will get a 27.5% tax rebate.” Says Zamisa.


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