Youth: revamp your finances in 2023

Personal money management means handling individual finances as well as savings and investments. It encompasses budgeting, banking, insurance, mortgages, investments, and spending.Income is the starting point of personal finance. It is the entire amount of cash that one receives and can allocate to expenses, savings, investments, and protection. This includes salaries, wages, dividends, interest, profits and other sources of cash inflow. Young people should aim to have various sources of income, such as from a business, investments, savings, and/or an employer. One should not relax until money is flowing in, because income is an important aspect of life.Take controlFor proper control, a budget is necessary. Having a financial plan is key, as it provides direction on how income can be used.The youth should aim to have savings to cover large expenses or emergencies. This means not spending all of one&#039;s income.Money has to be set aside first by moving some cash into a savings account immediately when it is earned. Automating this step can be a good choice, because one won’t even notice that the money is missing.It is also advisable to use a fixed account to enable interest earnings.Additionally, investing should supplement savings.Investing involves purchasing assets, usually stocks and bonds, to earn a return on the money invested.The most common investment is owning shares. Owning shares can earn you dividends, and that will mean extra income. Furthermore, youth are advised to protect themselves.Protection refers to the methods used to cover against unforeseeable events such as retrenchment, retirement, illnesses or accidents, and the death of a close family member, as well as a means of preserving wealth.Young people should schedule their future bill payments to help protect their credit score. It is also recommended to set reminders before bills are due to ensure the money for automatic withdrawals is available.Keep an eye on your spendingIndividuals must ensure their spending is less than their income; otherwise, they won&#039;t have enough money to cover their expenses or they will fall into debt.Tracking spending can be an eye-opening experience that could change the way money is spent.Overspending may lead to debt; therefore, spending should not exceed income to keep debt from getting out of hand. Nevertheless, one may borrow if it leads to acquiring an asset.Taking out a mortgage to buy a house might be one such case, and young people should take advantage of it.Minimising repayments, on the other hand, can free up income to invest elsewhere or put into retirement savings while still young to maximise the benefit of compound interest.Education is keyPersonal money management isn&#039;t one of the most popular subjects in educational systems.Many college degrees entail some financial education, but it isn&#039;t tailored toward individuals, which means that many need to get personal finance education from their parents if they are lucky or acquire it themselves.One doesn’t need a higher-paying job or a handout from anyone to improve personal finances.The path to better finances starts with changing one&#039;s own habits. Some of these changes will be easier than others, but if one is committed, maximum money management skills will be attained.Mishandling of finances is often due to a lack of knowledge. And, just because I am writing this column to assist fellow youth, doesn’t mean I have arrived, but only that I have experience on this matter.Hambeleleni Nguluve-Kandume is a Unam PhD student.

Youth: revamp your finances in 2023

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Namibian Sun 2025-05-09

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Youth: revamp your finances in 2023

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Namibian Sun 2025-05-09

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