August is Women’s Month in South Africa, a time to both celebrate women and to confront the many issues that women face. One of these is financial freedom. To help other young women become more financially independent from an early age, Nomi Bodlani, head of strategic markets at Allan Gray, reflects on common personal finance and investment mistakes she made in her 20s. Good advice to share with your clients that have just entered the work force as well.
According to Bodlani, if she could offer her 20-something-year-old self some advice, these are the money mistakes she would tell her to avoid:
Mistake 1: Believing that you’re too young to concern yourself with retirement-related matters
Mistake 2: Not preserving your retirement savings when you change jobs
Mistake 3: Relying too much on debt to meet present day needs
Mistake 4: Not talking to your family about money
Mistake 5: Going at it alone
Bodlani stresses that a good independent financial adviser is not only going to help set financial goals, but also put a plan in place to achieve them.
“If I could relive my 20s, I would make sure I understood just how valuable time is to long-term financial goals and that in the context of investing, time, if you have it, is free. The earlier you start saving for your retirement, the less you need to save from your current income,” Bodlani concludes.
Click here to download the Allan Gray media release where Bodlani unpacks each of the mistakes. You are obviously also welcome to share it with your clients.