Ask any adult what it was like entering the working world or moving into their own place, and they will tell you that leaving the nest was a big financial wake-up call for them.
Not only was life vastly more expensive when no longer cushioned by the comfort and safety of one’s parents, but they were also forced to face the realities of adulthood such as bills, rent, groceries – and what they really cost.
Nine times out of ten they will also tell you that they wished someone had been honest with them about what to expect. “Leaving school or university and joining the workforce marks an exciting but often uncertain new chapter, says Ruhan van Zuydam, Wealth Management Specialist at Consult by Momentum.
“Many young people step into adulthood with big dreams, yet little guidance on what to expect or how to build and protect their financial dreams.
“It’s important that young people understand the harsh realities of adulthood so that they can kick off their financial futures on the right note.” Van Zuydam shares five hard truths about leaving the nest.
It costs more to live than you might think.
The jump from student life to adulting often comes with a price shock. Rent, groceries, transport, Wi-Fi and unexpected expenses pile up fast. “Taking responsibility for your expenses can be overwhelming, says Van Zuydam, “but it’s also a motivator to start budgeting, planning, creating a rainy-day fund and taking ownership of your financial future.”
No one is going to advocate for you to get that career opportunity or promotion.
In school or uni, someone may have guided or recognised your potential. In the real world, success isn’t handed out – it’s earned. You need to speak up, ask for feedback, build networks and actively position yourself for growth. Financial independence and opportunity do not come to those who wait, but rather to those who seek them.
The earlier you get on the books, the easier your life will be.
Building a credit and insurance record early sets the stage for future financial ease. A solid credit history helps with everything from renting a flat to qualifying for a home loan, while some forms of insurance – such as life insurance – are often cheaper when you’re younger, as you’re seen as lower risk. “Start small and let time work in your favour.”
But also be warned: living on credit will cost you.
Credit isn’t free money – it’s a future obligation. Living beyond your means on credit cards or loans can quickly spiral into unmanageable debt. “Avoid unnecessary debt and prioritise needs over wants, Van Zuydam advises. “If you must borrow, do so with a plan to repay in full – and as quickly as possible.”
Most South Africans won’t have enough saved to retire comfortably.
Don’t be one of them. “Retirement may feel like a distant concern, but starting early is key, adds Van Zuydam. “Thanks to compound interest, even small amounts saved from your first pay check can grow into a substantial nest egg.“Wealth creation doesn’t happen overnight. It takes time, discipline and commitment – the earlier you start, the better.”
