Embrace a mindset of financial resilience and shape a legacy

Masego Mongae was only 15 when she earned her first salary as a model.

She shares that her mother was unemployed and getting the R1,500 salary after participating in a modelling contest led her to make important decisions about how to spend it.

“I knew I needed to do something I would not regret with the money I got. I needed a new school uniform and I knew my mother could not afford to buy it for me.

“I took the money and bought myself a school uniform, including shoes, socks, a tracksuit and stationery. The following year when I started Grade 10, I looked like other children in full school uniform,” the 30-year-old Mongae shares.

From then on, she took some money from her salary and saved it.

“I learnt how to be responsible with money from then. I saved money from the salary I got and would use the money for lunch at school. 

“As I grew older, I read books on personal finance that taught me the importance of saving for unforeseen circumstances.

“I am currently self employed and still do modelling and don’t have medical aid. So, I save up for times when I may need to see a doctor,” she says.

She said some of the books she has read have shown her how to categorise what you’re going to spend your money on something like groceries, rent, insurance, toiletries and pleasure and entertainment.

The young mother of a one-year-seven-month-old girl Bokang said she wanted to teach her daughter about money from a young age.

“I want to teach my daughter not to love money but to love making it. She must be independent and not rely on blessers.

“My definition of a healthy relationship with money is when one does not depend on loans or borrowing money to make ends meet.

“It is also not allowing money to rule your life. It is also about managing your spending and savings,” Mongae adds.

CreditSmart Financial Services managing director Wikus Olivier says it is important for young people to build financial resilience.

“South African youth is not only a group of passionate individuals and groundbreakers at heart but they can also exemplify financial resilience, embodying the qualities of true stewards of their finances. And in the process help shape a legacy for others to follow,” Olivier says.

“Financial resilience means being prepared to handle and overcome unexpected financial events, such as dealing with sudden expenses resulting from changes in the economy, interest rate adjustments, or medical emergencies. In today’s challenging landscape, developing financial resilience is more important than ever as it enables you to steer through challenging times without resorting to harmful credit and debt practices.

“We can all achieve financial resilience, even if our journeys differ. Together, let us build a legacy of financial empowerment and set the stage for a financially secure tomorrow. By implementing these tips and embracing a mindset of financial resilience, you can pave the way for a prosperous future for yourself and generations to come.”

Olivier shares the following tips to help empower you on your financial journey and to inspire others:

Set goals and nurture your “money relationship”: Your relationship with money is personal and can be influenced by your upbringing and experiences. It is essential not to let past encounters or beliefs, such as avoiding discussions about money, discourage or define you. Instead, see them as an opportunity to assess your financial goals, both long and short-term, and adjust your action plan that is sustainable for your unique situation. Remember, there is no one-size-fits-all solution, and your financial journey is ongoing.  

Embrace financial education and insights: The world of personal finance can be intimidating, especially if you feel you have limited insight. Seek out resources such as podcasts, seminars, and readily available reading material. However, ensure that the professionals or organisations you follow are registered and reputable. By continuously expanding your financial knowledge, you empower yourself to make informed decisions and confidently navigate the complex landscape of money and finance.

Allocate a portion of your budget to savings: Your personal spending plan, also known as a budget, is essential for monitoring your income and expenses. One crucial budgeting aspect is prioritising saving by “paying yourself first”. Treat savings as a regular monthly expense (even if it is a small amount at first) and set aside money for an emergency fund. By making space for savings in your budget, you ensure that you have a financial safety net during challenging times or unexpected circumstances. Cultivating this habit will provide you with much-needed financial stability.  

Ensure a good credit score and avoid excessive debt: Maintaining a healthy credit score (paying your debt on time every time) and practising responsible debt management are vital for your financial well-being. Take charge of your financial health by checking your credit score annually and making informed decisions when it comes to taking on additional debt. Take note, AI or quick fixes may not solve severe debt situations. If you require urgent help with your finances, consider a legal and regulatory solution to help you break free from debt’s shackles.

mashabas@sowetan.co.za