Things you wish you could tell your younger self about money

While earning a steady income may only happen when you reach your twenties, adopting simple money management tips and habits as early as possible will put you in a far better financial standing from the get-go.

Ayn Brown, chief human resource officer at TymeBank, believes it is very important to do weekend work or odd jobs from as young as 16 to start earning a small income because it teaches you to appreciate how hard money is to come by and that in most cases you need to work to earn it. 

Speaking to her younger self, she says: “Start saving 20% of each pay check and bonus or birthday gift you get. Yes, you cannot go out as much as your other friends, but you will be there for the important parts. And do not touch this money until ‘one day’ – you will know when that is. Looking back when you are older, it will be one of the best things you did and why you will have a great little nest egg to travel the world with zero debt.”

Ayn says it’s important to also save 10% of your income for emergencies or ‘life just happens’ items such as getting new tyres when your tread wears out. “These events come along when you least expect them and you’ll need access to cash to fix the unexpected glitch.”

She also warns about opening store cards. “Pay cash for clothes, never skimp on insurance and only buy second-hand cars.”

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Do more with less money

TymeBank co-founder, Coen Jonker, would give this to his younger self: “All those things that you think you need, you do not really need. Have fewer things. And when you do buy anything, invest your time to pick only the best at the best price. A good life is about quality, not quantity.”

Learning is among his top tips. “By far the best investment you and your family can make is in learning. Investing in your knowledge and skills (formal and informal education) will give you the highest return of any investment that you can make. If you want more money, invest in yourself. You are the money-making machine. If you are at the top of your game, the money will follow.” 

Learn to budget, understand credit and know the difference between a “need” and a “want”

Tauriq Keraan, CEO of TymeBank, says he would tell his younger self to “budget properly so that you can start saving when you are young. The compound effect it has over many years is very powerful – as you earn interest on your savings’ interest – but you will miss out on this effortless way of growing your money every year you miss out on saving.”

He also believes that you should not cash out your pension when you leave a job given so few people can afford to retire. Instead, keep this invaluable nest egg for later on in life. “The best way to create excess money is to start and grow your own business. However, it has to be the right business, in the right space, at the right time.”

Head of marketing, Linda Appie, says it is important to respect and save money. “It is also critical to avoid borrowing what you cannot afford to lose. The other thing to remember is that store cards are necessary only as a means to build a credit record and must be paid off every month.”

Cheslyn Jacobs, chief commercial officer, says the number one thing that he would advise his younger self is that it is never too early to start saving. “The sooner you start and the more consistent you are, the more powerful the discipline becomes. It is not about the amount, it is about the behaviour,” he says.

“I would also tell myself to make sure I know what my financial ‘needs’ are compared to my financial ‘wants’. It is the ‘wants’ that reduce our buying power and eat into our disposable income.”

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