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3 IMPORTANT FINANCIAL MOVES TO MAKE IN YOUR TWENTIES It may be counter-intuitive if you’re living life day-to-day, as young people generally do, but financial moves you can make now will prove of enormous benefit to you later in life, writes Vernon Pillay. IT IS said that youth is wasted on the young. The 10 years between turning 20 and progressing into your thirties are mostly filled with adventure, independence and joy. Millennials and Zoomers (Generation Z) are having kids, getting married and buying a home much later than their predecessors. Edwin Theron from digital insurer Sanlam Indie says that as a result, these young adults are sometimes missing the opportunity to initiate certain financial commitments in their twenties, which would directly (and positively) impact their lives as early as their forties. “The understandable desire amongst millennials for increased independence and purposeful
work means that many young people of today are saving and investing for short-term goals, but neglecting to consider their longerterm financial aspirations,” says Theron. He proposes three decisions that should be made as early as possible: 1. START SAVING FOR RETIREMENT Retirement is often overlooked when you're just starting out. You’re more concerned about cash flow for the upcoming weekend and less worried about your accommodation as an eighty year old. Theron stresses that it’s never too early to start saving for retirement. The earlier you start,
the more time your nest egg has to grow. “A good method for starting your savings and investment journey is to allocate a percentage of your income to this fund – a non-negotiable portion of your income that is removed as it comes in,” says Theron. In some cases, employers might match your retirement contributions, which is another great way to amplify your savings efforts. (See “Money Basics” on page 8.) 2. LOOK OUT FOR THOSE CLOSEST TO YOU There are many arguments for taking out income protection as a young adult – the greatest of which is the reduced price of the premium when you’re young
