Investing in your future

Traditionally, if you want to retire by age 65, experts agree that you should aim to save enough to ensure that the pension you eventually receive is around 70% of what your salary will be when you retire. Achieving this target typically requires that you invest at least 15% of your monthly income into your retirement savings, for the full duration of your working life, from the age of 25.

How do you find the middle ground between investing in the future you and still living your best life today?

“Advice and planning is essential and having a budget is the best way to do this,” explains Ntombi Tisani, head of marketing at Old Mutual Personal Finance.“

“It’s also never too early to get in touch with a financial adviser.”

“We are seeing millennials make small changes to their daily spending habits that don’t hamper their lifestyles too substantially,” says Tisani.

These behavioural shifts have resulted in a cutting back on luxuries like holidays, shoes and clothing and alcoholic beverages.

Tisani offers the following tips to young people to develop a positive savings culture:

Eat out once a week versus every night.

Live economically. Don’t buy things you don’t need and don’t try to keep up with friends and neighbours.

Plan a Netflix night in instead of going to the movies. Look after the things you have. Don’t make excuses about why you don’t save – it won’t get you anywhere.

Use credit sparingly and carefully. It’s cheaper and more rewarding to wait until you’ve saved the funds yourself.

If you’re in debt pay this off as fast as you can.

Don’t ever be afraid to ask questions.

How do you find the middle ground between investing in the future you and still living your best life today?