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Top tips to secure your financial future

Starting your savings plan the right, less painful way.
Saving from the start and investing in a retirement policy early can save you from future troubles. Picture: Shutterstock

I wish I had known earlier how the financial decisions I make today will affect tomorrow. If I had, I could have avoided many costly mistakes in my youth.

From experience, here are some tips to share with the youth to prevent them from making similar mistakes. 

Say no to instant gratification and peer pressure

When I was younger, many of my friends wanted to impress women and each other by buying expensive things that they actually couldn’t afford. This resulted in them taking out multiple credit and store cards when they first started working. It was great for a while because they could buy whatever they wanted, whenever they wanted, but a year later, all their earnings were going towards paying off their debt.

While it might be tempting now to take out credit and store cards, you’ll be paying the price later on – sometimes even for several years. You need to ask yourself if whether the people you are trying to impress are worth the pain. 

Find a financial advisor

It’s important to have a financial advisor from the minute you start earning money so that you can make better decisions on what to do with it (and don’t end up drowning in debt). Many people are reluctant to speak to a financial advisor because they are worried that their money will be taken from them. However, a financial advisor will work with you to come up with a financial plan that can be reviewed on an ongoing basis and adjusted in line with your needs. If you allow yourself to engage with a financial advisor at this early stage, you can make informed financial decisions that can pay off handsomely in future.

 Plan for retirement right away

While retirement may seem a long way off, you need to plan for it as soon as you start working so you can harness the power of compound interest and be set up for a life of leisure. Those who don’t save early often feel caught off guard when retirement age starts creeping up on them and, while they might try put away large sums of money at the last minute, they won’t have the benefit of compound interest and may even compromise their current quality of life by doing so. Your financial advisor can guide you on the best policy to get, based on what you can afford at the moment.

Get life insurance early

Taking out life cover at a young age comes with a number of advantages – you’re in good health, it’s cheaper and you get much higher cover. If you leave it too late, by the time you apply your premiums will be more expensive and you won’t be as healthy.

Peter Tshiguvho is CEO of Metropolitan Retail.


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“Get Life Insurance early”

Nice one Tshiguvho

That really is good advice. Some 25 years ago I took out a Universal Life Policy ( for whole of Life ) with Old Mutual. R 100 00 cover cost me R 50 per month. I increased the cover a few times over the years, and presently pay R 150 for R 240 000 cover. It has a cash value of some R 35 000. ( It was never meant to be an Investment Policy – and I will never cash in).
BUT – I do regret that I never took out 3 or 4 times the cover at inception.
I don’t think they even market Universal Life Policies today.

“Say no to instant gratification and peer pressure” Always have done.
“Find a financial advisor” No thanks. Gone through 3. They lost me significant amounts of money. I do it myself now to great success.
“Plan for retirement right away” Always have done – using my own planning. I had a few blips by using financial advisors.
“Get life insurance early” I have a passive income plan. It makes me money while I sleep. Life insurance not necessary.

So at age 28 you had enough passive income plan to help you wife and 2yo son to get by without you? (just an example)

You shouldn’t be earning if you don’t understand finance. That is be your own financial advisor and reap the rewards.

…..”get a finacial advisor early….” bwah hahahaha. Yes, because they are genuinely good people who want to help you. Also used them for 20 years….made ZERO money. Been doing my own thing since 2012 using etfs, a bit of googling, and a healthy dise of common sense,and loving the results. Never ever ever give a cent to an advisor who ….”will help you select the correct policy”…..worst advice ever!!! Shocking that MB is complicit in prnting this drivel.

Why would you buy a retirement annuity when your company has a pension or Provident plan with a matching contribution?
Why would you lock up your money into something you cannot use for 35 years WHEN you will be buying a house and car and paying HUGE amounts of interest. Don’t forget kids cost a lot of money
Life cover – Chances are you are going to live at a young age and your company benefits 3X or 4X or more will be enough?
Just remember people R 2,000,000 life cover in 35 years
will be worth R 67,500.
For 22 years I have taught about this. They always say you “need” more life cover and retirement.

What you need is Financial Fitness !!

‘Get life insurance early’- The authors reasoning is because it is cheaper when you are young. You are also less likely to use it when you are young. Insurance is insurance- it is an expense. Your premiums are also not stagnant. We should self insure where possible.

‘Advisors’. They take 1% pa of all your investments- and cannot guarantee you anything. The advisor I once had gave me some terrible, bias advice. They also push products where they get the greatest commission- which are sometimes not in your favor. My advise- is that if you do need to use an advisor- you would rather get one who charges a fixed consult fee that the commission nonsense.

Is it unreasonable to think that any long term RA or Pension Fund will ultimately be looted?

End of comments.





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