Pearls of financial wisdom worthy of the name

Faced on a daily basis with financial advice, tips and recommendations, we’ve compiled a list of some of the best financial advice worth sharing.

Don’t depend on somebody else for money: Being completely financially dependent on another person can put you in a vulnerable position. People often find themselves trapped in abusive relationships because they cannot stand on their own financially. Regardless of how happy your partnership or marriage may be, tragedies do happen, and circumstances change.

Put your oxygen mask on first: With the rise of the “sandwich generation”, more and more people attest to feeling financially torn between financing their children’s education and helping their aged parents financially. The best approach, however, is to first take care of your own retirement funding and put plans in place for a financially secure future. You’ve got to put your oxygen mask on first before you can help others.

Start saving with your first pay cheque: this advice might sound trite, but it is still important. If you don’t start saving early you may struggle to find room in your budget later on. As your financial commitments grow the harder it becomes to find money in your budget to save for the future.

Spend less than you earn and invest the rest consistently in a well-diversified portfolio: spending less than you earn is only the first step towards wealth creation. It’s what you do with what’s left that really matters.

Craig Torr is founding director of Crue Invest