Money tips for graduates

10 May 2019 | Rubrieke
Llewellyn Wrinkler

Many graduates can benefit by adopting good money management principles early in their careers, to ensure a guaranteed, stable and stress-free financial future.

Whether you are entering the work environment for the first time, starting a permanent job after an internship or running your own business, taking control of your finances right now can help you avoid developing bad money habits that can prove difficult to overcome.

Here are six money management tips for graduates to consider -

• Save for retirement earlier: Some individuals only realise halfway through their careers that they will not have enough money to live off during retirement. This often results in them having to compromise some of their financial needs in order to make up for the shortfall.

• Living beyond your means: Although it is essential to spoil yourself and have fun when you start earning a salary, avoid getting into the habit of spending beyond your means. Try and separate needs from wants, and avoid living a lifestyle that leaves you unnecessarily indebted.

• Good vs bad debt: Not all debt is bad for you. Knowing how to use debt to get ahead in life, as well as using the right form of credit, forms an integral part of a good money management strategy.

• Saving: Regularly putting money away for personal needs, investments or emergencies cannot be overemphasised.

If you find it challenging to save money on your own, set up a monthly deposit, where the bank can deduct money from your account and put it away for you.

It is also important to take out cover for insurable risks, to avoid paying from your own pocket when disaster strikes. Furthermore, if you already have a family or people depending on you financially, life cover should be considered.

Renting vs buying

Making the right choice, depending on your individual circumstances, can help you save money in the long-term. For example, it may be more cost-effective to rent if you have a job that requires you to relocate regularly. Similarly, if you do not have a job that requires you to travel or relocate, buying the townhouse or flat you are staying in is not only cost-effective, but can be a good investment for the future.

Plan for holidays

Try to plan a year in advance for expensive holidays. This will give you enough time to put money away. You can also benefit from massive discounts when booking flights and accommodation in advance. Although the above tips are not conclusive, they will give you a good foundation for managing money adequately. Also, take into account that there isn't a perfect formula for handling money, as it all depends on your individual circumstances. The best approach is to have a plan in place, budgeting regularly and being disciplined when it comes to money matters.

* Llewellyn Wrinkler is the portfolio manager: young professionals at FNB

Soortgelyk

 

'n Seder val in Swapo

9 ure gelede | Mense

Ronelle Rademeyer - Huldeblyke stroom sedert vroeg gisteroggend in die sosiale media in nadat dit bekend geword het Namibië se voormalige vise­president (2015 – 2018)...

Duitsland gee ou kruis terug

9 ure gelede | Plaaslik

Ronelle Rademeyer - Een van die belangrikste artefakte uit die glorieryke ontdekkersera van die Portugese seevaarders sal in Augustus deur die Duitse museum vir geskiedenis...

Weer vir 20 Mei 2019

9 ure gelede | Weer

WEERWAAK: Koue en winderige toestande word in die Suide verwag. Die nodige voor­sorgmaatreëls moet getref word. BINNELAND: Gedeeltelik bewolk en warm tot baie warm in...

Namport dank 86 werkers af

9 ure gelede | Plaaslik

Die Namibiese haweowerheid, Namport, het Vrydag aangekondig 86 werkers by die vraghouerterminaal by die Walvisbaaise hawe wat in Augustus aan 'n onwettige staking deelgeneem het,...

Speaker dring aan jeug moet by kiesproses betrek word

9 ure gelede | Politiek

Denver Kisting - Die speaker van die Nasio­nale Vergadering (NV), prof. Peter Katjavivi, sê die jeug moet by die verkiesings­proses betrek word.Die uitvoerende hoof van...

'Sam Nujoma is 'n ikoon'

9 ure gelede | Regering

Stigterspresident Sam Nujoma se 90ste verjaardagvieringe is Saterdag op Etunda in die Omusatistreek gevier en deur verskeie hooggeplaastes bygewoon. President Hage Geingob het Nujoma as...

Water: Hou rekord van elke druppel

9 ure gelede | Regering

Elvira Hattingh - Tot 90% van die water in Windhoek wat onnodig weens lekkasies of buitensporige waterverbruik verlore gaan, sou gespaar kon word indien huishoudings...

Semifinalis onttrek aan Mej. Namibië

9 ure gelede | Gebeure

Tanja Bause - 'n Semifinalis in die Mej. Namibië 2019-kompetisie, ­Michelle Pretorius, het aan die geleentheid onttrek. Volgens haar ma, me. Anke Pretorius, het Michelle...

'Millenniërs werk anders'

9 ure gelede | Ministeries

Augetto Graig - Werkloosheid onder die jeug is 'n nasionale krisis wat op alle vlakke, nie net deur die regering nie, dringend aangespreek moet word....