How School Leavers Can Manage Their Finances

You might be free from school, exams, late nights and early mornings, but being careless and carefree with your money is about to be a thing of the past. Bring on the expenses!

If you haven’t already, you need to put your hard-earned pocket money in a bank. This will help you keep track of money coming in and out. But which bank is the right bank? Generally, there’s no right or wrong, you just have to find the one that works for you. (You’re probably inclined to join the same bank as your parents).

Credit is the frenemy

Although you need a credit record for almost everything these days, credit means you owe money, which signifies you’re in debt. If you don’t manage your debt correctly, or pay it off fast enough, you’ll end up owing more – a major setback you really don’t need. Not all debt is bad though. Think of student loans. As long as you finish your studies, you’ve not only benefitted yourself but your future.
Make sure you can identify your expenses, then create a budget plan. Find out how much you will need to put aside each month and save. This will help you prevent any unnecessary debt in the future.

Don’t let banks be the bully

Banks will incentivize just to get you to join them. Are the perks really worth it 3 years down the line, or is it a fancy offering that’s convenient now, but not in the future? Look at all your options, and consider them carefully.

Cars are for grown-ups

The best part about being an adult, definitely driving yourself around without having to give mom and dad a call, or rely on your older friends for a lift.
Even if your car gets handed down to you by your parents, you are still going to have to pay a hefty amount for petrol, services, breakdowns, parking and oil changes. (These all add up in no time). If you are perfectly capable of getting around with public transport and prefer it, do it! In the long-run, it will work out to be more cost-effective.

Gym Bunny

Unless you are a certified personal trainer, you really don't need a gym membership. It’s an added expense that you really don’t need right now. Rather save gym workouts you can do at home, or partake in your neighbourhood park run. If you do 30 minutes of exercise a day, you’ll be fine – don’t forget your metabolism is still on your side.

Ready for retirement?

Although it might seem like a lifetime away, to retire comfortably these days you need around 14 million. Put aside money each month that can form part of your retirement savings plan. Rather start at a young age, and accumulate a decent amount of money, than rely on a job you might not do forever.

Original article: https://blog.moneysmart.co.za/matric-checklist-financial-management-for-school-leavers/ 

January 04 2019 By moneysmart Financial Planning