Helping our young ones find their feet

I need to save for my children’s education

Saving for children’s schooling fees should not be a top priority at this stage, says Marsden.

“Before contemplating this, it is vital to build a solid financial foundation first. This means having an emergency fund equal to six months’ expenses, no credit card debt and sufficient savings for retirement.”

I only need to think about finance when I have kids and a mortgage

Marsden says the beginning of one’s career provides the perfect time to analyse and manage finances.

“Personal finances can get increasingly complicated with age, as one has to deal with mortgages, children and medical bills.

“By examining income and expenses on a regular basis, one can make small changes to financial behaviour to have solid habits in place when finances become complicated.”

It is not a big deal to skip a few credit card payments

The easiest way of losing control over finances is letting credit card debt pile up, says Marsden.

“Once a payment is skipped, the card holder will be charged significant additional interest on the amount, which will increase the monthly payment amount.

“This negligent behaviour can lead to severe financial distress and seriously affect one’s credit rating, meaning you may not be granted loans.”

While young professionals may not be earning high salaries yet, it is crucial for this group to create a sound financial plan in order to foster good financial habits and ensure better financial security in the long term.

“When you get salary increases always put 10 percent of it away before you spend it on anything else,” says Marsden.

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