Johannesburg- Social media influencers are a powerful force in today’s economic engine, but there are dangers to seeking financial advice from someone who may not have an understanding of your personal situation, the country you live in, or even the financial challenges that are unique to your life.
This has been backed up by the fact that a leading social media platform has recently banned its users from advertising financial services in a move to curb scams and poor financial advice.
This is not to say social media can’t prompt young people to start thinking critically about money.
There are good conversations to be had around financial literacy and the promotion of financial responsibility.
The problem is that opportunists are everywhere and consumers should arm themselves with the knowledge of what constitutes good advice.
So, how should a younger, more digitally oriented generation attune themselves to the complexities of personal financial management?
Where you are in your life can guide you towards your most important financial goals, to grow your wealth, and secure financial freedom.
The question is, what are the most suitable investment options in South Africa for your unique needs.
To provide some structure to your approach, here is some advice on how young people should approach financial management for different stages of their lives:
Starting a career
When you’re young, starting out in life and finally earning a living is exciting. The sooner you start saving and investing your money, the sooner you get a head start on your journey to financial success.
It’s the best time to set up that much-needed emergency fund so you have a financial safety net, save for short- and long-term goals, start a tax-free savings account, and start investing for retirement to take advantage of compound growth.
Starting a family
Making your family circle bigger costs money.
Each family’s journey is different, whether you need to save for your child’s education, put money away for that family holiday or a bigger car through flexible investment options, or invest extra for a more comfortable retirement.
When it comes to your loved ones, you can’t afford to leave anything to chance. It’s time you start looking at the bigger picture because now, you have more than just yourself to think about.
You can’t predict the future, but you can rest easy knowing they’ll be financially secure no matter what life throws your way.
Planning for your tomorrow
Everyone’s journey is unique, but some goals, like a cushy retirement and growing your wealth, are important.
Many South Africans have slowed or stopped contributing to their retirement savings due to the ongoing effects of Covid-19.
The current economic climate has led some people to consider dipping into their retirement funds to access capital. However, that shouldn’t stop you from finding a way to invest for retirement as early as possible.
Growing your wealth
Do you want to create a better future for yourself and your family? Or do you simply want to leave the world a better place?
Whatever your reason for growing your money, aim high but be realistic in the process. The longer your money is invested, the more it will benefit from compounding – the power of growth on growth.
Get influenced by the right advice
The truth is that it is not easy to always make the right financial decisions, but there are financial advisers out there who know what they’re doing and can apply their knowledge to your unique situation and goals.
By Janine Horn.
• Horn is a Financial Adviser at Momentum.
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