By Annalise De Meillon-Muller, Senior Legal Specialist: Advice, PSG Wealth

In the financial services industry, we’ve found that many older clients say they wish they had made different financial choices when they were younger. For young people aiming to build a solid financial foundation, a few simple steps now can make a world of difference later.

Imagine you have a job interview in two weeks’ time. You feel unwell, but are sure it’s nothing serious, probably just the seasonal flu. A week later, the cough has worsened, but money you’ve saved is intended for a new pair of sneakers, and you don’t want to spend it on a doctor’s appointment. So, you take something from the medicine cabinet instead.

A few days before the interview, your body crashes. You can’t get out of bed, so you finally call the doctor, but it’s worse than you thought and you miss the interview. You find yourself thinking “Why didn’t I just deal with this sooner?”

The procrastination trap

Just like ignoring flu symptoms can result in something far more serious, neglecting your finances in your 20s could turn into the financial equivalent of daily new aches and pains in your 50s.

Here are the simple lessons we can learn from the mistakes our friend made:

• Not starting early means small problems can quietly compound into bigger ones. It is better to harness compound growth than to allow problems to compound.
• Choosing short-term gratification compromises long-term value.
• Quick fixes are no substitute for real solutions. Over-the-counter remedies may ease symptoms, but they’re not as effective as an expert diagnosis.
• A crash moment and subsequent losses – unexpected expenses can lead to debt, financial shock and a loss of protection.
• By the time we have regrets, it’s often too late.

In other words:

• Start saving, investing and growing your wealth sooner rather than later.
• Don’t increase long-term risk for immediate satisfaction.
• Focus on the root cause of problems and not just on symptom alleviation.
• Don’t let the real costs catch you off guard.
• Try to avoid thinking, “Why didn’t I just start somewhere?”

Take charge

You already invest in your health, so start doing the same with your money. Because good health without financial stability can leave you feeling stuck.

• Taking budgeting shortcuts is like skipping regular medical check-ups or avoiding regular exercise.
• You know you need a medical aid plan, and you use the correct safety gear in your chosen sport or hobby. This is much like having risk cover for death, illness and disability.
• Investing and growing your money is similar to doing strength and resistance training, as both are investments in mobility, flexibility and endurance.
• Look at the bigger picture. Just as maintaining your heath involves making incremental changes over time, planning for a rewarding retirement starts now, even if only starting with a small amount.
• And then there are the ‘what ifs’ – what if I can no longer run, cycle or go to the gym? What am I going to do then? While the ‘what if’ of untimely death may seem distant, estate planning allows you to make arrangements in case it happens.

It’s not about how much you start with. It’s about how early you start and how consistent you remain. It’s about beating your own prejudices. Your pocket and bank account might feel the pressure if you start today, but they will be smiling in the future, so choose to invest in yourself. You don’t need to do it alone either – speak to a qualified financial adviser, who can help you take control of your financial future.