MyMoney Online

Youth…take charge of your financial destiny!

June 16th – Youth Day – presented an opportunity for young people to focus on their futures, reflecting on the past as a foundation to build upon.

Youth need to be empowered with a strong belief in themselves, that they can become whatever they dream and believe they can be. One vital pillar in their journey to successes is financial freedom; a stage in the future where one's savings can support one’s standard of living.

Learn from the 95% people who at age 65 don’t have enough savings for their retirement; or from the many that had to borrow money because they didn’t have a nest egg to fall back on when an unexpected financial disaster came their way.

If they had a chance to do it all over they would have saved so much more. They realised when it was too late, that they needed a much larger nest egg for their twilight years.

Young people can reach financial independence if they make financial commitments to themselves. Here are three ways to ensure you will get there.

Commit to living under your means instead of above them

Essentially, if you are borrowing money to make ends meet you are living above your means. This is exacerbated when you are paying off interest to institutions instead of saving for your future. There will be times where you will need to borrow money for a house or a car. However, the repayments on these, should be comfortably affordable, after you have set aside your savings.

Don’t be lulled into debt

You have been lead to believe that debt is a ‘must have’ because banks need a credit history before they can extend a loan to you.

This is true, but the smart way around this is to open a store card which generally offers interest free loans for the first six months. Using this free money to purchase something makes good financial sense if you stick to buying something that you really need and you can comfortably afford to pay off over the period.

It’s free cash and requires a disciplined commitment to paying the installments – on time – every time. You therefore build up the credit record without incurring costs.

Save…Save….Save…

If you commit to saving for yourself first at the beginning of every month, you begin the gratifying journey towards financial freedom.

The more you own and the less you owe the greater your sense of financial independence. Don’t be surprised at how your savings can grow over time through the magic of compounding.

By reinvesting the returns on your savings over time you participate in this financial phenomenon where the interest on interest over time boosts your savings into the stratosphere.

Young people have so much to look forward to. If you are wise you will take charge of your finances early in life avoiding the pitfalls experienced by the older generations before you.

Listen to the audio below for more information

Read more from Paul Roelofse at www.investforlife.co.za

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
3 hottest JSE stock picks of the week (by Cannon Asset Managers)

3 hottest JSE stock picks of the week (by Cannon Asset Managers)

These three shares are the best investments on the JSE right now, says Cannon Asset Managers Portfolio Manager Samantha Steyn.

Best investment on the JSE (and 2 offshore stocks to consider) – by Rand Swiss

Best investment on the JSE (and 2 offshore stocks to consider) – by Rand Swiss

Invest yourself rich! Rand Swiss Portfolio Manager Singa Gungqisa shares his stock picks of the week on The Money Show.

Hottest stock on the JSE right now (post-Cabinet reshuffle) – Vestact

Hottest stock on the JSE right now (post-Cabinet reshuffle) – Vestact

Looking for a hot tip? The Money Show’s Bruce Whitfield interviews Vestact Portfolio Manager Byron Lotter.

3 best investments in the world right now (by Mia Kruger)

3 best investments in the world right now (by Mia Kruger)

Hot tip alert! Mia Kruger of Kruger International Asset & Wealth Management shares her stock picks of the week on The Money Show.

3 JSE shares you should invest right now (by Momentum)

3 JSE shares you should invest right now (by Momentum)

Looking for a hot tip, or three? Here’s what Momentum Head of Investments and Savings Steven Schultz is buying...

Want to withdraw from your retirement fund? You’re not (even remotely) alone…

Want to withdraw from your retirement fund? You’re not (even remotely) alone…

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

Popular articles
Scopa could probe Fransman for R9 billion paid to consultants

Scopa could probe Fransman for R9 billion paid to consultants

The payments in question were made between 2005 and 2008 while Fransman was Transport and Public Works MEC.

"I'm no longer going to watch Isidingo"

"I'm no longer going to watch Isidingo"

Will Isidingo lose viewership over it's episode tackling racism?

Oldest apple tree found on Table Mountain

Oldest apple tree found on Table Mountain

Tru-Cape's varietal expert, Buks Nel unpacks the history of the oldest apple tree located on Table Mountain.

[Listen] SA's youngest female PhD grad opens up about her achievement

[Listen] SA's youngest female PhD grad opens up about her achievement

23-year-old North-West University student Musawenkosi Saurombe aces her PhD thesis passing with no amendments.

Sea Point's Mojo Market opens for business on Thursday

Sea Point's Mojo Market opens for business on Thursday

A new lifestyle market is set to open in Sea Point, offering a variety of food, art, fashion and entertainment seven days a week.

Still no trace of missing Charlotte Nikoi, one month on

Still no trace of missing Charlotte Nikoi, one month on

The husband of missing Charlotte Nikoi has pleaded with public to come forward with any information regarding her whereabouts.