Saving doesn’t come naturally to most of us. For someone who is relatively young or in their twenties – grasping the real value of money can be quite difficult. 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 tips will help you to get your financially-free future:
1. Save sooner rather than later
One of the most compelling reasons for you to invest or start saving is the prospect of not having to work your entire life, and being able to enjoy some financial freedom in the interim. There are various short, medium and long-term savings and investment options available. Start small – save for a holiday or medical insurance, and soon you’ll be able to save for bigger things such as a car or house. The sooner you start saving, the better.
2. Keep tabs on your spending
A spending plan, otherwise known as a budget, is the single best way to ensure you live within your means. Don’t blast away your paychecks in one go. If you spend ‘too much too soon’, you can sit with devastating consequences, like excessive and unwanted debt for many years to come. “Rather prevent this type of financial distress by keeping your monthly budget under control,” said Potgieter.
3. The non-negotiable emergency buffer
People who’ve had large and unforeseen expenses arise can probably either tell you how lucky they were to have kept an emergency fund, or how difficult it was to cover from all the expenses. 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 ensure financial help when you really need it. Potgieter said, “An ideal emergency fund consists of a two or three months’ salary”.
4. Live a realistic lifestyle
So you’re constantly trying to keep up with the Joneses and 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. Potgieter added that splurging on things you want but don’t need will have you well on your way to exorbitant debt and financial misery.
5. Ask for help, dont be shy…
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,” concluded Potgieter.
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