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

Read More
3 stocks that’ll boost your wealth this January (by Herenya Capital Advisors)

3 stocks that’ll boost your wealth this January (by Herenya Capital Advisors)

Looking for great investments? Herenya Capital Advisors’ Petri Redelinghuys says you need not look further than these three…

Financial advisor answers listeners' money questions

Financial advisor answers listeners' money questions

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

How I’m investing for my child’s education - share trader Garth McKenzie

How I’m investing for my child’s education - share trader Garth McKenzie

Share trader Garth McKenzie started a portfolio of 10 stocks when his son was born. It’s going quite well for him…

Invest yourself rich in 2017! 4 experts share some hot stock picks for the year

Invest yourself rich in 2017! 4 experts share some hot stock picks for the year

The Money Show’s Bruce Whitfield asks four portfolio managers for hot tips on where to put your money to work this year…

Moving? Getting divorced? Keep money in your pocket when change is in the air

Moving? Getting divorced? Keep money in your pocket when change is in the air

Personal finance consultant Samke (Sam) Ngwenya discusses finances in times of change.

6 signs you’re not as good with money as you think

6 signs you’re not as good with money as you think

Think you’re good with money? You may want to read this first…

Popular articles
'My daughter bought Spur shares when she was 10 years old' - Dr Adrian Saville

'My daughter bought Spur shares when she was 10 years old' - Dr Adrian Saville

What does Citadel’s famed disciple of contrarian, deep-value investing Dr Adrian Saville hope for (and fear) about money?

'I apologise to our customers for the inconvenience' - Ford SA CEO Jeff Nemeth

'I apologise to our customers for the inconvenience' - Ford SA CEO Jeff Nemeth

The Money Show’s Bruce Whitfield interviews Ford South Africa CEO Jeff Nemeth.

‘3 richest South Africans have wealth equal to the poorest 28 million’ – Oxfam

‘3 richest South Africans have wealth equal to the poorest 28 million’ – Oxfam

The Free Market Foundation's Leon Louw, however, calls Oxfam "OxScam" and says the organisation does not care about poor people.

Mbete joins ANC succession race, and Zuma surprises Mkhize in KZN

Mbete joins ANC succession race, and Zuma surprises Mkhize in KZN

According to reports, some ANC Women's League members do not support Nkosazana Dlamini-Zuma, and want Mbete to take over.

Lumka Oliphant sorry for insulting women while defending Minister

Lumka Oliphant sorry for insulting women while defending Minister

Minister Bathabile Dlamini's spokesperson says people should stop spreading lies that minister drinks alcohol.

Terror expert warns that SA could be a target in 2017

Terror expert warns that SA could be a target in 2017

Sunday Times reported that a Islamic State bomb maker was arrested as he was about to board a flight to Johannesburg.

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.