Money tips for grad­u­ates

Inner City Gazette - - Front Page -

Lynette Klop­pers,

She shares six money man­age­ment tips for grad­u­ates to con­sider:

Save for re­tire­ment ear­lier – some in­di­vid­u­als only re­alise half way through their ca­reers that they will not have enough money to live off dur­ing re­tire­ment. This of­ten re­sults in them hav­ing to com­pro­mise some of their fi­nan­cial needs in order to make up for the short­fall.

Liv­ing be­yond your means – although it is es­sen­tial to spoil your­self and have fun when you start earn­ing a salary, avoid get­ting into the habit of spend­ing be­yond your means. Try and sep­a­rate needs from wants, and avoid liv­ing a life­style that leaves you un­nec­es­sar­ily in­debted.

Good vs bad debt – not all debt is bad for you. Know­ing how to use debt to get ahead in life, as well as us­ing the right form of credit, forms an in­te­gral part of a good money man­age­ment strat­egy.

Sav­ing – reg­u­larly putting money away for per­sonal needs, in­vest­ments or emer­gen­cies can­not be over em­pha­sized.

“If you find it dif­fi­cult to save on your own, set up a monthly de­posit, where the bank can deduct money from your ac­count and put it away for you,” ad­vises Klop­pers.

It is also im­por­tant to take out cover for in­sur­able risks to avoid pay­ing from your own pocket when dis­as­ter strikes. Fur­ther­more, if you al­ready have a fam­ily or peo­ple de­pend­ing on you fi­nan­cially, life cover should be con­sid­ered.

Rent­ing vs buy­ing – mak­ing the right choice, de­pend­ing on your in­di­vid­ual cir­cum­stances can help you save money in the long-term. For ex­am­ple, it may be more cost ef­fec­tive to rent if you have a job that re­quires you to re­lo­cate reg­u­larly.

Sim­i­larly, if you do not have a job that re­quires you to travel or re­lo­cate, buy­ing the town­house or flat you are stay­ing in, is not only cost ef­fec­tive, but can be a good in­vest­ment in the fu­ture.

Plan for hol­i­days – try and plan a year in ad­vance for ex­pen­sive hol­i­days. This will give you enough time to put money away. You can also ben­e­fit from mas­sive dis­counts when book­ing flights and ac­com­mo­da­tion in ad­vance.

“Although the above tips are not con­clu­sive, they will give you a good foun­da­tion for manag­ing money ad­e­quately. Also take into ac­count that there isn’t a per­fect for­mula for han­dling money, as it all de­pends on your in­di­vid­ual cir­cum­stances.

“The best ap­proach is to have a plan in place, bud­get­ing reg­u­larly and be­ing dis­ci­plined when it comes to money mat­ters,” con­cludes Klop­pers.

FNB Premier CEO

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