Four (4) Tips for Building Financial Resilience in Young People

 “Our South African youth is not only a group of passionate individuals and groundbreakers at heart, but they can also exemplify financial resilience, embodying the qualities of true stewards of their finances. And in the process help shape a legacy for others to follow.”

highlights managing director, Wikus Olivier.

Financial Resilience means being prepared to handle and overcome unexpected financial events, such as dealing with sudden expenses resulting from changes in the economy, interest rate adjustments, or medical emergencies. In today’s challenging landscape, developing financial resilience is more important than ever as it enables you to steer through challenging times without resorting to harmful credit and debt practices.

Olivier shares the following invaluable tips to help empower you on your financial journey as you forge a prosperous future not only for yourself but also for those you inspire:

TIP 1: Set goals and nurture your ‘money relationship’

Your relationship with money is personal and can be influenced by your upbringing and experiences. It’s essential not to let past encounters or beliefs, such as avoiding discussions about money, discourage or define you. Instead, see them as an opportunity to assess your financial goals, both long and short-term, and adjust your action plan that is sustainable for your unique situation. Remember, there is no one-size-fits-all solution, and your financial journey is ongoing.  

TIP 2: Embrace financial education and insights

The world of personal finance can be intimidating, especially if you feel you have limited insight. Seek out resources such as podcasts, seminars, and readily available reading material. However, ensure that the professionals or organisations you follow are registered and reputable. Continuously expand your financial knowledge so that you empower yourself to make informed decisions and so that you can confidently navigate the complex landscape of money and finance.

TIP 3: Allocate a portion of your budget to savings

Your personal spending plan, also known as a budget, is essential for monitoring your income and expenses. One crucial budgeting aspect is prioritising saving by “paying yourself first.” Treat savings as a regular monthly expense (even if it is a small amount at first) and set aside money for an emergency fund. Make space for savings in your budget to ensure that you have a financial safety net during challenging times or unexpected circumstances. Cultivating this habit will provide you with much-needed financial stability.  

TIP 4: Ensure a good credit score and avoid excessive debt

Maintain a healthy credit score (paying your debt on time every time) and practice responsible debt management as it is vital for your financial well-being. Take charge of your financial health by checking your credit score annually and making informed decisions when it comes to taking on additional debt. Take note, AI or quick fixes may not solve severe debt situations. If you require urgent help with your finances, consider a legal and regulatory solution to help you break free from debt’s shackles.

In conclusion, Olivier remarks: “We can all achieve financial resilience, even if our journeys differ. Together, let us build a legacy of financial empowerment and set the stage for a financially secure tomorrow.” Implement these tips and embrace a mindset of financial resilience so that you can pave the way for a prosperous future for yourself and generations to come.