As you move through life, you will encounter different phases and interests, and your perspective will change. Where you choose to spend your money will change as a result.
We have a look at the impact on your finances, and how you can adapt for continued personal growth.
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Changing circumstances, changing priorities
Ester Ochse, product head at FNB Money Management, points towards the different values and priorities you will naturally acquire as you age.
“At the age of 20, you may have just started working and your priorities may be buying your first car, or possibly saving towards becoming a homeowner or travelling,” she says.
“If you have kids, you would also look at meeting immediate expenses as opposed to long-term savings. A 20-year-old may assume that retirement is a long way away and planning for this financially may not be a top priority,” she explains.
On the other hand, Ochse says that if you’re 60 you’re likely looking forward to your retirement and putting your plan into practice to ensure that your money can sustain your lifestyle and retirement goals.
“You could decide to retire at the coast or start to focus on your side hustle as part of your retirement plan. Or you could still be supporting dependants and have a different set of priorities, such as providing adequately for their health and leaving a legacy,” says Ochse.
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How to keep your attitude flexible
In order to keep up with your changing financial priorities, Ochse says that you should keep the following in mind:
- Become more aware and experienced with how you manage your money over time.
- Learn how you can build wealth and take on debt for wealth creation, as well as living an affordable and sustainable lifestyle.
- Another trend in attitude over time would be the realisation of having to save for longer-term goals and being patient with your money.
“Your attitude will change when you experience life events. This may include becoming a homeowner, having kids, being retrenched, and even changing careers or deciding to focus on your side hustle full time,” says Ochse.
She believes that educating yourself on financial options and seeking financial advice from professionals will aid you in becoming more financially savvy and in adjusting your approach towards money as you age.
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