There are many metaphors that can be used to describe the well-accepted idea of one becoming the product of one’s environment.

Ultimately, when we take an honest glance at ourselves, we begin to notice that we all display certain characteristics which we have absorbed from the people we spend the most time with.

We begin to share outlooks, ideas, phrases and even behaviours with our closest friends, families and even colleagues.

It’s for this reason that it’s extremely important to surround ourselves with good company. By choosing to be around people who uplift us positively, we are giving ourselves the opportunity to grow and evolve into the best possible versions of ourselves.

This applies to every sphere of our lives that make up the whole, including the financial sphere, which generally takes a rather large piece of the pie.

Our financial worlds are easily one of the most important and stressful worlds of them all. However, sound financial advice can go a really long way.

We have accumulated some of the most meaningful financial advice from sound-minded, determined, hard-working individuals and put them into a list.

Here are 7 pieces of life-changing financial advice from our financial advisors in Johannesburg:

·        Take a closer look at what you are spending your money on

Most people who are in debt are people who spend too much money on unnecessary luxuries. A house that’s too big, a car that’s much too fancy or expensive dinners almost every night. These are not priorities and are often the cause of people struggling to live within their means.

·        Start your married life living off only one income

Live a modest life off one salary and save the other salary. After a few short years you will be able to buy your first home together which will ultimately provide more financial stability. By having a large sum of money saved, you have woven yourself a sturdy safety net.

·        Pay cash for your car

Instead of paying large monthly payments for a car that is unnecessarily big or fast or fancy, take what you have saved and buy a car cash. Your car serves one purpose and that is to get you from A to B in one piece. Then, take what you would have paid a dealership every month and put that into a savings account. Should the day come that your current car is no longer serving its purpose, you will have the cash to upgrade and pay for your next car. You can repeat this cycle until you get to a point where you have a car that will last you a good 20 years. Driving a brand-new car every year is not necessary and it’s how you get into bad debt.

·        Use a spending plan instead of a budget

A monthly budget requires a detailed tracking of money spent. A spending plan offers flexibility. First, determine your monthly take-home income and then subtract your fixed monthly expenses. The amount you have left is now available for you to manage and decide where you want the money to go. Divide it up into percentages and adjust according to what you need to achieve each month.

·        At every chance you have, give

You are never too poor to give. In finding compassion for those less fortunate and giving to those in need, you will receive rewards in abundance and in many forms. Generosity is always worth the sacrifice, no matter how small.

·        Don’t be ruled by money

Although your salary must be considered when taking a job, it should never be the deciding factor. Money will never buy you happiness. Your skills, values and strengths should be used first and foremost to make a difference in the world. However, never settle for a job which will only take advantage of you without offering you fair remuneration.

·        One extra payment on your bond per year will take years off your loan

Work out how much extra money per month you can afford to add to your bond repayment plan and add it in. Use your 13^th cheque at the end of the year to make an additional payment to your loan. In doing this, you can significantly reduce the length of your loan and you'll end up paying your house off sooner than you planned.

Olemera Financial planners in Johannesburg

At Olemera, we provide professional financial services with transparency as our foundation. It is of utmost importance to build a long-lasting relationship with our clients.

We take the act of giving sound financial advice seriously. We aim to lead our clients down a well-constructed path towards financial stability.

For more information about our comprehensive financial services, contact us.