Financial tips for young adults

20 November 2020 | Bankwese
Llewellyn Winkler



Although student debt can be significant, and the desire to take advantage of one's youth can lead to some reckless spending, the beginning of adulthood is a critical period to ensure a prosperous future for yourself. If you act wisely early on, you can reap a lot later on.

Here is soe advice for young professionals:

1. Set your financial goals

The best way to maintain healthy finances is to set your short- and medium-term goals. This allows you to choose how to achieve them, for example, by saving an amount every week. This way, if you plan on buying your first home, for example, it will be easier than trying to find thousands of dollars at once. In the short term, you could also use this same strategy, for example, to take a trip to Europe.

2. A budget is an excellent tool

To avoid falling into debt, a budget remains your biggest ally and, contrary to popular belief, it need not be constraining. It should reflect your needs and help you easily keep track of your income and expenses. Having a balanced budget can help you save money to achieve your financial goals.

3. Anticipating expenses in adult life

Though you may have made a detailed budget, unexpected expenses often crop up. To get a good idea of the expenses involved in an event such as moving into your first apartment, for example, a good strategy is to ask someone who has already gone through this, or your financial adviser, what to expect. Another winning strategy is to set up a contingency fund for unexpected expenses, since they always crop up.

4. Credit score: managing your financial reputation

A credit profile is a credit history, that is, a person's capacity to pay off their debt. In other words, a credit score is used to evaluate a person's reliability when money is lent to them. If you diligently pay off your debt, financial institutions will not hesitate to lend you more money in the future because they will be reassured as to your ability to pay them back. On the contrary, if you skip payments and interest builds up, they will be mistrustful and won't want to lend you all the money you need to achieve your plans.

It all comes down to this: by living within your means today, when you still don't have any major financial responsibilities, you are building good habits that will ensure your long-term financial health. Speak to FNB today to see how we can help you save and achieve your life goals.

Soortgelyk

 

Twee vas vir moord op Daniele Ferrari

2 ure gelede | Misdaad

Ronelle Rademeyer - Twee mans van die Havana- informele nedersetting verskyn vandag in die Windhoek-landdroshof in verband met die wrede moord op mnr. Daniele Ferrari...

Vermoorde vrou naak by Vierkantklip gevind

2 ure gelede | Misdaad

Ronelle Rademeyer - Teen laat gister was die vrae oor die lot van die 26-jarige vrou van Mondesa op Swakopmund wie se naakte lyk knap...

Polisiebeamptes ‘verdwyn’ met kiesmateriaal

2 ure gelede | Politiek

Hoofredaksie en Ester Kamati op Otjiwarongo - Twee polisiebeamptes wat Dinsdagaand met verkiesingsmateriaal op Otjiwarongo “verdwyn” en eers 40 minute voordat stempunte gisteroggend geopen het...

Weer vir 26 November

2 ure gelede | Weer

BINNELAND: Sonnig en baie tot bloedig warm in die Suide, andersins gedeeltelik bewolk en baie tot bloedig warm met 'n paar tot geïsoleerde donderbuie oor...

26 leerlinge toets positief vir Covid-19

9 ure gelede | Gesondheid

Uit die 68 nuwe Covid-19-gevalle wat vandag aangemeld is, is 26 leerlinge. Dit sluit 23 van die hoërskool St. Joseph in Windhoek en drie leerlinge...

Vrou se lyk by Vierkantklip op strand gevind

14 ure gelede | Misdaad

Die polisie het pas bevestig hulle is besig met 'n ondersoek op die plek waar die lyk van 'n vrou vanoggend deur "'n private persoon"...

Drie lorries bots naby Okahandja

1 dag gelede | Ongelukke

Ronelle Rademeyer - ‘n Vragmotorbestuurder moes met Kake van die Lewe uit die verfrommelde kajuit van sy lorrie verwyder word toe drie vragmotors kort ná...

Boer vooruit met min grond, min reën

1 dag gelede | Byvoegsels

Elvira Hattingh – ‘n Jaar en ‘n half nadat mnr. Johan Bean met sy intensiewe, maar baie suksesvolle skaapboerdery op sowat 5 ha grond in...

Veilings ly onder dalende veegetalle

1 dag gelede | Byvoegsels

Ellanie Smit – Hoewel Agra se omset in die 2019-’20 finansiële jaar gestyg het, het sy afdeling vir veilings deurgeloop omdat minder vee bemark is....