You have painstakingly completed 12 years of formal education, your awkward teenage years are nothing more than a distant memory and you feel ready to step into adulthood.
Whether you are launching your career through gainful employment or furthering your studies, being financially savvy is of the upmost importance to avoid end of the month blues.
“As you enter the adult world, managing your money wisely is a skill that will shape your future,” said Hans Myburgh, an independent financial advisor from Northmead, with 30 years of industry experience in risk, cover, savings products and investments.
Whether you’re earning an entry-level salary or working part-time as a student, practical budgeting can set you on the path of financial certainty, he said.
Myburgh’s guide to smart money management
• Create a simple budget
Track your earnings and spending by prioritising essential expenditure such as transport, food and rent.
Attempt to allocate at least 10% of your income to savings.
Capturing your budget in writing, on a spreadsheet or using easy to use free apps can help you stay on top of your finances.
• Save early and often
Saving a small amount regularly can grow significantly over time, thanks to compound interest.
The earlier you start, the more your money works for you.
• Be a smart spender
Differentiate between needs such as groceries or transport and wants such as designer clothes or unnecessary subscriptions.
Take advantage of student discounts and always shop around for the best deals.
• Get basic insurance
Affordable funeral coverage or health insurance will protect you and your family from unexpected costs which could derail financial progress.
• Plan for the future
Open a high-interest savings account or consider investing in a tax-free savings account (TFSA).
These options help you grow your money and prepare you for bigger goals like buying a car or furthering your studies.
• Early saving matters
Starting to save in your teens or early twenties gives you a huge advantage.
Compound interest means that your money earns interest upon interest.
Over time, this snowball effect can turn small savings into significant amounts, setting you up for financial independence, security and success.
“Remember, good money habits today create opportunities tomorrow,” said Myburgh.
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