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<\/a><\/p>\nBelow Ramalho outlined additional tips for South Africans who are looking to invest at an early age.<\/p>\n
Realise money is a tool<\/strong><\/p>\n If you\u2019re in your 20\u2019s and ready to build wealth, it all starts with recognising the money you earn is nothing more than a tool to make smart choices regarding spending, savings and investing, she said.<\/p>\n Ramalho advised young adults to set both short and longer term investment goals and then plan accordingly.<\/p>\n Ramp up your saving for retirement<\/strong><\/p>\n Your 20\u2019s are a time when there are almost too many goals to save for. You may want to buy a home, purchase a new car, or travel the world \u2013 all at a time when you should also save for the future, said Ramalho.<\/p>\n Alex Whitehouse of Whitehouse Wealth Management says your best bet is to start investing gradually then ramp it up as you age. This will allow you to save for retirement while also letting you save for other goals.<\/p>\n “Start with just 1% of your income, then increase the percentage gradually by 1%.”<\/p>\n “By the time you reach your 30\u2019s you\u2019ll be saving 10% of your income.\u00a0 By your 40\u2019s, you\u2019ll be saving 20% of your income. And if you get a raise every year, you may not even notice the difference.”<\/p>\n Ignore all the Joneses in your life.<\/strong><\/p>\n Don\u2019t try to keep up with Joneses \u2013 it only means you run the risk of spending money you don\u2019t have, racking up debt, and of course putting off \u2018boring\u2019 responsibilities like saving and investing for the future, said Ramalho.<\/p>\n Choose your luxuries carefully and don\u2019t fall into debt by financing everything with your credit card. Cash remains king.<\/p>\n Invest in yourself.<\/strong><\/p>\n No matter what happens with the stock market or the price of bitcoin, the only place you have total control with your investments is in yourself.<\/p>\n “Invest in your personal, professional and financial growth; read as many books as possible and listen to advice from financial planners on radio and actively develop your skill set,”\u00a0Ramalho said.<\/p>\n
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