“Most of us were raised with the mentality of fearing money and not knowing how to maximise it when we have it. Money is a great tool but a terrible master.  Learn to be its master.” Some profound words from a family friend of mine who is in her early 40s, when asked about her overall perspective on money. We all have different perspectives and relationships with money, but those quoted words? I wish I’d heard them earlier in life; perhaps then I’d have been able to live with financial confidence sooner. 

As a child, I always had everything I needed and, at some point, thought my parents would buy me a car on my 21st birthday. That's how financially stable I thought my parents were and I thought I wouldn’t have to worry about bills until I was thirty-something. But life will always throw curveballs. Long story short, I had to start working as a promoter in my mid-teens, not because we were broke, but because I wanted to start being independent. Additionally, my mom left her job and I felt as though I had to help unburden her in some way.

Looking back now, it’s safe to say I knew how to get money, but probably not how to use it or – an even wilder idea – how to grow it. I wish I had someone to tell me then that it’s OK to compare the prices before I make purchase decisions, or that it’s fine to lay-bye stuff or put off the purchasing and save for a few months. 

I had a chat about money with my best friend’s sister earlier this week. A 32-year-old mother of one, she couldn’t stop talking about the importance of saving. She shared with me how she wished she had started saving earlier, from the money she got from her very first job. I figured I had better take this as a sign and stop spending money from my savings plans! 

I started varsity and continued my journey of independence, getting more promoter jobs and freelancing for an experiential events company, but I cannot tell you where all that money went.

Fast forward to when I started getting a pay-check during my internship. My mother fell really ill and this meant a lot of financial responsibilities fell on me. During this time, I kept wishing that she had some money stashed somewhere or some sort of an emergency plan, but unfortunately, she didn’t, so there I was, six months into my internship, and I had no savings at all. This was one of my biggest mistakes to date, but at the same time, I'm not sure what I could have done differently. That’s where Sanlam’s Money Rule resonates with me. The best time to start saving was yesterday, the second best time is today. I’m going to start, today. 

In our 20-somethings, we grow impatient and rush to rent an apartment or get a car, buy expensive clothes, go on holidays… But we sometimes end up not enjoying all these things because we drown in debt. From where I am now, I can gladly say that I would rather have stability than luxury, so I can have comfort later. 

So, here are a few tips from me to the 20-something:

1. Take time to research and think through life changing financial decisions. Consult a financial adviser or consider a Sanlam Money Meet-up if you need some guidance.
   
   

2. Rainy days WILL come and there is no perfect way to prepare for them, but some savings can go a long way. Invest in an emergency fund as early as possible. At our recent Sanlam-sponsored Agenda Women Summit 2021, Bronwyn Abrahams spoke about how she left her job with R60 000 in her savings account. She thought that was a little, but we did a live poll and it turns out most of our viewers don’t have that in savings, which is probably representative of South Africans in general.  Adele Barnard, our Sanlam financial adviser on the panel, pointed out that we need to normalise saving, no matter the amount! If you can put R100 or R250 towards a rainy-day fund, that deserves a happy dance.
   
   

3. Don’t just jump onto every investment you come across, research, read and ask around.
   
   

4. We love our families. If it's difficult to say no to them, then try not to reveal everything you earn. It’s fine to ensure you keep some money to invest in your future self.  Part of living with confidence means paying yourself first and prioritising your goals, as well as your family responsibilities.
   
   

5. If you’re saving money, put it in a fixed savings plan, or at the least try to be disciplined enough not to withdraw it unless it’s an emergency.
   
   

6. It’s fine to enjoy your money! Don’t be scared of it. But try to stick to a budget and cut unnecessary costs when you can.
   
   

7. Many of us don’t earn in traditional 9-to-5 jobs anymore. Slashers do this / this/ and that.  We juggle lots of hustles at once, which means multiple non-traditional income streams. It’s so important to keep track of these. The Sanlam online financial check tool can help show where the gaps are in building financial confidence. It’ll spot the areas where more progress can be made to make sure money goals are met. 

In each stage of life, the importance of a financial plan will always come up, in one way or the other. We are surrounded by so much information; our role is to filter through it and grasp what we deem useful to us and go with that. Life will always throw surprises at you, but I think I would have gotten through some of these surprises a bit better if I was a bit financially stable, or somewhat prepared to say the least. Now, I live with confidence, knowing I’m ready for whatever comes my way. And I’m determined to share my newfound knowledge with my family and friends.