Your financial future may be impacted by the financial choices you make in your twenties. Because of this, it’s crucial to work toward creating sound financial habits now so that you can reap the rewards in the future.
In your 20s, you may avoid needless debt, save money for the things that are essential to you, and take advantage of compounding to create a fortune in the future by developing solid spending and saving habits, learning to budget and investing.
Building a solid foundation for your later years may be simpler than you realise.
Jacques van den Heever, Regional Executive at Sanlam, says “It’s heartening to see how open this generation is to seek and ask for advice, and great to see these topics discussed at length on social media. The current holistic health movement places an emphasis on achieving physical, mental, and financial well-being. Financial advisers with the right experience, knowledge and aptitude, can be a massive asset to achieve this, providing the support you need for your future financial success, with less emotional stress.”
Jacques explains how a professional adviser in your corner can significantly improve your long-term financial health, through the following tips:
They facilitate an early start
Your future success may depend on how soon you establish a relationship with a financial advisor.
Using compound interest to your advantage and making your money work hard for you can be done with the help of a financial advisor.
Starting your financial planning journey while you are in your 20s or 30s can put you in a far better financial position than someone who starts in their 40s. Forgoing a daily cup of coffee is one little saving that can mount up over time, according to Jacques.
They support tax planning
Effective tax management has several advantages, and a financial advisor can guide you through tax structuring and educate you on how to take wise deductions, helping you build wealth through clever tax planning. He continues, “Before committing to a financial adviser and entrusting someone with this responsibility, vet their qualifications to ensure they are a registered tax practitioner.”
They support you in selecting and preserving your savings vehicle
Your financial planning will only be effective if you choose the proper savings vehicles for your goals and stage of life. You’ll need professional advice when making choices on retirement annuities, endowment plans, tax-free savings, shares, and unit trust funds.
By comparing them to the best possibilities on the market, an adviser can keep your financial products current and maximise your potential gains in the future.
A financial consultant can also put the required cover in place to guarantee that you are safeguarded against the financial repercussions of life’s curveballs. This covers dread diseases, life insurance, and income protection.
“Trusting an adviser with your financial planning is like relying on a skilled mechanic to keep your car in top condition. By monitoring and adjusting your plan as needed, they also act as the ‘motor plan’ that ensures your financial ‘vehicle’ remains relevant and effective in helping you reach your financial destination,” says Jacques.
They have access to comprehensive market information
Expert knowledge about market patterns, economic cycles, and other investment vehicles is offered by qualified financial counsellors. You may update your financial goals and make informed selections by keeping up with the most recent changes and utilising their experience.
They assist in building and expanding generational wealth
For managing an inheritance or building money for future generations, a financial advisor can offer insightful advice. Your monetary accomplishment will leave a lasting impression in this manner.
“Just as you should check the credibility of an influencer before considering their tips, you should also do your research to find a professional who aligns with your goals. This includes examining the profiles of potential advisers on LinkedIn to determine their qualifications, experience, and areas of expertise. Remember that the right adviser should have a strong track record and demonstrate a deep understanding of the financial landscape,” concludes Jacques.
Also see: Benefits of networking you should know
