Head of segment youth Markets at Absa Bridget Nkandu gives us top tips on how you can balance the good life while putting some money away for your future.
Pay off your student loan
Like most young people today, you probably started ‘adulting’ with a huge student loan debt. You committed to an educational path, now commit to a large monthly instalment to pay your loan off sooner. If you don’t prioritise paying off this loan it could hold you back from reaching a future financial goal you have set yourself.
Take credit card debt seriously
Buying a lot on credit in your 20s can cause havoc for your credit record. If you find yourself relying on credit to maintain a lifestyle of wants and not needs, you need to reassess your priorities. The first step is to stop using your credit card immediately. Then you need to set up a budget and a debt payment plan that lets you pay back extra each month, to avoid high interest rates. Remember: the sooner you act, the better.
Owning an economic car
Buying your first car brings brings independence, freedom and unforgettable sho’t lefts with friends. But, buying an expensive car and setting yourself up for big monthly repayments is a big money mistake. Before committing, consider the hidden costs that come with owning a car, like petrol, maintenance and car insurance. Once you’ve drawn up a realistic budget including these costs calculate as to what kind of car you can actually afford.
Reaching your financial goals will take time, and life is full of unexpected little setbacks, but as long as you keep managing your money and stay on top of your finances, you’ll be well on your way.