Lot of planning and dedication

or easy. You must have a solid financial plan to ensure that you can give your child the best life possible.

You can compare raising a child to a second housing bond. This is because raising a child is a long-term commitment that could last for years until they become financially independent.

Research on South African middle-income households show that it costs about R90 000 a year to raise a child.

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Buying a car is one of the largest financial decisions one can make. When it

What car you drive

comes to buying yourself the dream car you deserve, the best advice is to buy the car that fits your finances.

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How early you start saving

Warren Buffet wrote, “Don’t save what is left after spending; spend what is left after saving.

“How much you spend determines your savings rate. If you are young, time is one of your greatest friends in wealth accumulation. You will never get more in the future.”

Simple calculations show that a 23-year-old who invests R6 000 every year for 10 years at an annual return of 8%, will have R93 873.

If after those 10 years, she stops contributing and does nothing until age 60, her investment will have grown to R749 863.

The person who waits until they are 33 to begin investing will need to save R7 950 for 27 years, in order to have around R749 863 at age 60.

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Whether you do it yourself or get a financial adviser

You definitely do not need a financial adviser if you have self-control, financial planning knowledge and self-knowledge.

Given that our lives are so full of other activities, you are likely to need assistance with financial planning from qualified people.

Financial advisers are in the business of investor behaviour modification. The investor’s chief problem and even his worst enemy, Benjamin Graham said, is likely to be himself.

We all have emotions and biases that affect our decision making, so we need a voice of reason to assist us to act rationally.