Financial health begins now...
JUST START, GET AN EMERGENCY FUND, INVEST, LEARN ALL YOU CAN ABOUT MONEY Cut what’s unnecessary in your budget and save the difference. It’s the single most important financial decision you’ll ever make – Kristia van Heerden.
Carly Barnes, EasyEquities brand manager says: Just start. We often put things off that we’re a little afraid of or intimidated by, which means we lose out on the learning you get when you just jump in. Start with small changes, but start, whether that means investing R50 a month or finding one thing to cut from your monthly expenses. Small changes become big changes over time.
Financial health means creating a lifestyle that trims down the excess, but allows for a few treats. You’re more likely to stick to your plan if you aren’t too hard on yourself. Don’t bury your head in the sand. Understand where your money goes every month. Own it. Read up and make an effort to understand the stuff you don’t get. Ask – you’d be surprised how many people are happy to share their skills and knowledge.
Kristia van Heerden, JustOneLap.com CEO says:
Understand interest, inflation, compounding, assets and index-tracking products – it’ll empower you to make logical financial decisions. Google, ask a friend, learn in whatever way is comfortable. Keep lifestyle expenses as low as possible and save the difference. It’s the single most important financial decision you’ll ever make. Have enough savings to cover expenses for three months. Once your emergency fund is in place, start investing. Cash savings won’t preserve the spending power of your money. If you think investing’s hard, you’re wrong. Anybody can do it.
Michelle Dickens, MD of TPN Credit Bureau, says: Leveraging is a powerful way to create wealth but it can easily spiral into a debt disaster if you have over-leveraged when the interest rates, vacancy rates or tenant delinquency ratios go up. Have a savings fund to cover the property expenses should things go south. Protect your financial identity. Don’t leave it until you’re in a sticky situation before you get acquainted with your own personal credit report. You have access to a free annual credit report – use it to confirm the accuracy of all your credit and rental agreements.