After years of studying, side hustles, internships or job hunting, there's finally money landing in your account with your name on it. You've probably spent years imagining that moment. Then it arrives and disappears almost immediately.
Suddenly you're expected to know how to budget, build credit, save for the future, invest, manage debt, help family if needed, and somehow still have enough left over to enjoy your life. The reality is that while school and university prepare you for a career, they don't always prepare you for the financial decisions that come with earning your first salary.
It's no surprise that many young South Africans feel overwhelmed by money decisions in the early years of their careers. And while most focus on budgeting, saving and investing, many overlook one of the most important financial building blocks of all: protecting their income and future earning potential. Recent ASISA research found that South Africans under 30 have just 32% of the disability cover they need and just 12% of the critical illness cover required to adequately protect themselves financially.
The good news? Getting your financial life on track doesn't require a massive salary. It starts with a few smart habits from your very first payslip.
Here’s a six-step playbook for making better money moves, right from the start.
1. Think Ahead
“It’s difficult to imagine our future selves, so we tend to take care of our present selves instead,” says Farzana Botha, Communications Manager at Sanlam Risk & Savings. Neuroscientists call this the Stranger Effect: brain imaging shows that when people think about themselves in 10 years’ time, the same neural networks activate as when they’re thinking about a complete stranger. This makes financial planning difficult… and it makes it a lot easier to spend money on instant rewards.
But Botha says that it’s not about making a choice between buying things for Today You or investing in Ten Years’ Time You. “The best advice you could get as a young person is to lose that either/or mentality,” she says. “It’s about doing both, buying the things you need today, while making a contribution – however small – to long-term goals like investment and insurance.”
2. Start Small
Let’s be real: young people don’t avoid buying insurance because they don’t want it; they’re underinsured because they think they can’t afford it. Botha has a practical solution. “Do 10 small things, rather than doing one big thing and neglecting the other nine,” she says. “Break your salary down into small chunks, and work towards each of your financial goals. Make small contributions towards savings, investment, short-term insurance, life cover, and so on. Even if your contributions are small to start with, you’ll still be putting yourself in a better position in the long run. And the good news is, as a young person, you can often get great deals on insurance cover.”
3. Ignore The Influencers
Social media, advertising, and peer pressure all reinforce the idea that success looks like travel, luxury, beauty, and curated lifestyles. “This creates a subtle but powerful pressure to ‘keep up’,” warns Afua Darko, Business Head at Sanlam Credit Solutions. “And it drives your spending decisions, which are sometimes supported by easy access to credit. The result is a focus on matching external expectations, rather than building long-term financial security.”
4. Manage Your Credit
Speaking about credit… While it can help with important “adult” purchases (like a car or a home), if credit is not managed well, it can turn into debt that must be repaid. “Credit itself is neither good nor bad,” says Darko. “When used responsibly, it can be a powerful enabler.”
Darko also encourages first-time earners to sign up for a free credit report through a reputable provider and review it regularly. "Your credit report gives you visibility into your credit score and helps you track how you're managing debt over time," she explains. "It's also one of the easiest ways to spot early warning signs before they have a bigger impact on your financial future."
The problem arises when credit is treated as an extension of income, rather than a short-term financial instrument. “Many young earners fall into the trap of using credit to sustain lifestyles they cannot yet afford,” Darko explains. “Ultimately, the goal is to shift the mindset from using credit for consumption to using it with intention. Credit should support building a stable financial future, not compromise it. That starts with a critical foundation: protecting your income and your financial base first. Without that safety net, even well-intentioned credit decisions can quickly become financial risks.”
5. Learn
The youth insurance gap is also an education gap. “Many young people simply haven’t been taught how to think about risk, protection, or long-term financial planning,” says Darko. “These are not concepts that are consistently taught in schools, and in many cases, they’re also not modelled at home – not out of neglect, but because previous generations may not have had access to the same knowledge or tools.”
Botha agrees. “A lot of young people are coming out of school without financial education, and coming out of varsity with debt,” she says. “If you don’t know what to do, that pressure can lead you into making bad financial decisions. But if you know what the consequences of your decisions will be, then you’ll be able to operate with clarity and confidence – taking care of your present, building towards your future, and protecting yourself against the things you can’t see coming.”
6. Speak to an adviser
According to Sanlam’s 2025 Financial Confidence Index, 45% of young South Africans already have financial planning through a bank or financial adviser. Make sure you’re not part of the 55% who don’t.
Access to information has never been greater, and the Internet is breaking down traditional barriers to financial education… But Fintok and Finfluencers will only take you so far. You need personalised advice that’s relevant to you and your circumstances – and that’s where a financial adviser comes in. No matter how young you are, how small your salary is, or how modest your savings are, a financial adviser can help you find the right solutions for your budget.
“The opportunity now is to make financial protection just as aspirational as lifestyle spending,” Darko concludes. “It’s not a grudge purchase; it’s a smart, empowering choice.”
