22 August 2014
Young professionals often enter the corporate world with little understanding on how to manage their money. Thinking about the need to save for a rainy day and even retirement is not yet a priority, and thus, the furthest thing from their mind.
DebtBusters has outlined some common myths young professionals believe and why it is vital to ensure that they do not become a victim of these myths at a young age.
A helpful tool like budgeting can help them overcome the challenges attached to the myths and put them on the right path to a brighter financial future.
“I can’t save because I earn too little”
Anyone can save. It is essential draw up a budget so that you can have control over your income and expenses and know exactly where your money is going. Making provisions for investments and savings must also be factored into your budget to ensure that you make a point of saving something each month. Living against a budget does not only make you more disciplined with your finances, but will allow for you to save no matter how much you earn.
“I’m young; therefore I do not need insurance”
Young working professionals often believe that nothing can happen to them in the prime of their lives. However, accidents can happen anytime and anywhere. Being severely injured can have major implications on your financial situation. Taking out insurance will protect you from these financial implications. It is important that you get into the habit of protecting your wealth from a young age.
“It does not matter if I miss one or two debt repayments”
Missing a single payment affects your ability to get access to credit in the future as it will negatively impact your payment history. You will also be charged significant interest over and above your normal interest rates, which is an unnecessary expense and you will land up paying more in the long run. Missing a payment is the first indication of poor money management.
How can DebtBusters help you overcome these financial myths?
If you find that you are struggling to make payments and your money is not lasting until month end, it’s time to take control of your finances.
No matter how much you earn, the first step to taking control of your finances involves drawing up a budget.
More importantly, once you have created a budget, you need to stick to it!
How to stick to your budget
More specifically, if you are struggling to manage your debt, a DebtBusters financial consultant will draw up a budget that is tailored to your lifestyle, while at the same time, will help you manage your money and make sure your debts are repaid on time! For a free financial consultation and assistance with drawing up a budget, call a DebtBusters financial consultant on 0869990606.
Start thinking of your future today!