Unlocking Financial Freedom As A Youth...

Financial literacy is a core skill for participating in modern society and our increasingly complex world. Financial illiteracy in youth leads to ill-equipped adults, societal failures, gloomy future, and the list goes on and on...

The life-long skills in financial knowledge imbibed early, gives them the best chance for long-term financial independence. Here are a few financial tips to set you on the path to financial freedom:

Set SMART goals

Many young adults face the dilemma of making far-reaching choices regarding their future. Some feel compelled to make decisions that they may later regret.

Some drift without much of a plan or purpose; this is where parents, guardians, teachers can play a role as mentors to guide and point in the right direction by exploring innate potential, natural strengths, talents and abilities. By establishing clear goals, you can make realistic plans for your life.

Start with a budget

Budgeting is a very effective way of keeping track of your expenses. Create a budget so that you can see exactly where your money is going. Start by adding up the essentials, transportation, food, rent, school fees, etc.

This is the time to commit to save and invest for the future. The key is to live below your means and spend less than you earn even as things begin to ease up.

Use debt judiciously

It is better to borrow for things that have lasting value such as your personal development and education, or in assets such as property, rather than for clothes, gadgets and luxuries.

Your employer, family, friends and banker might consider lending you money. Be meticulous with repayment and don't abuse this trust. It is about credibility; building a solid credit history from now is important.

Start to BUILD Your savings

Don’t wait until you have that windfall to start to save. No matter how little you earn, save something; even the smallest amounts add up over time. Automating your savings by setting up a direct debit makes saving much easier.

Set a realistic savings goal and start to save at least 10 percent of your income in an interest-bearing account or a money market mutual fund. Ideally, you should try to accumulate up to 6 months’ worth of your living expenses, or up to 12 months if you can.

Invest for the Long-term

One concrete way to invest for the future is to get on the property ladder. You are never too young to get started. Start small and build; it may be a plot of land to start with. Mortgages are available once you start to earn steady income at a particular level, but interest rates can be prohibitive so plan to pay off any loan as early as possible.

Choose your life partner wisely

Your choice of a life partner is one of the most significant decisions that you will ever make. Do your partner’s moral and ethical values match yours? Whilst you don't have to agree on every single financial issue, compatible goals and values, as well as openness and trust, are key, as you merge not just your lives, but your finances.

Invest in Yourself

You are your greatest asset. Be deliberate about building the skills that you need. There is an increasing demand for digital skills as a prerequisite to enter most roles. Education will always matter; equip yourself and keep learning and improving by reading widely. Embrace your strengths, talents and gifts.

Invest in financial knowledge.

Seek professional advice so that your own unique situation can be carefully considered and you can be guided appropriately. You also owe it to yourself to build your own knowledge. Knowledge is power and there is a plethora of information in books and the online and print media.

Health is wealth

Don't be one of those that expend all their energy and health creating wealth only to spend years in ill health spending all that wealth to regain your health. It is those intentional daily steps that you take now that will help to sustain you in the future. Eating healthy foods, exercising, not smoking, limiting alcohol, are important immediate steps to take.

Earn your Independence

It is the desire of most parents to ease the path for their children. Whilst it’s nice to receive assistance from your parents, don't let it short-circuit your own ambition, motivation and drive.

Your parents provided you with a sound education; now you are no longer a child; earn your independence and start to take charge of your life. The choices that you make in your youth, will largely determine how your life will be in the future.

YOU CAN DO THIS, YES YOU CAN!!!

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