7 important tips every young African professional needs to achieve financial success

The surest way to ensure that you achieve financial success is by starting early. This is why Business Insider Sub-Saharan Africa has compiled this list. Here are seven important tips every young professional needs in order to achieve financial success:

Always divide your earnings

The first thing to do whenever you get your monthly salary isn't to immediately start spending rather it is to divide it into three parts. Keep 20% aside for savings, 30% for fun things like going to the movies, eating out, e.t.c and the majority 50% for your day to day expenses. You can increase the percentage of the earnings you set aside if you are saving for something specific. Regardless of how much you decide to set aside, make sure you always save. One way to achieve this is by using automated savings, a feature that a digital savings app like Piggybank offers.

This tip is highly recommended by Latoya Scott of Life and a Budget who says, "My top quick and dirty tip would be to automate savings. No matter how big or small, all it takes is setting up a direct deposit with payroll or auto deduction with your bank!"

Make a plan (budget) and stick to it

Once you remove the 50% you need for savings and fun stuff from your salary, the next thing to do is to make a plan. This plan will help you figure out what you need and how much it will take to take care of your needs. It also helps you track your expenses and builds your self-discipline. Once you draw up this plan, make sure you stick to it. You can use apps like Wally and Unsplurge.

Pay with cash

Constantly using your ATM card is the easiest way to run out of cash because of how easy it is to use it. This is why we encourage you to use cash instead. Each time you take money out of your wallet to pay, you are reminded of exactly how much you are about to spend. This makes it relatively difficult to spend recklessly.

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Have two bank accounts, one card

It's important to have two separate bank accounts - one for saving and the other for spending. However, you only need one card. Make sure you only get a card for the account you spend from.

Pay off your debt

Make sure you always pay off your debt as soon as possible. Owing money drags you down financially and prevents you from ever attaining financial stability. So learn to pay off your debt as soon as possible.

Invest

There are two kinds of people, the ones who simply save their cash and the smarter ones who make their money work for them by investing. Saving is great but figuring out a way to make more money with your savings is even better. So, make sure you learn how and where to invest.

Live below your means

In this social media era, it is really easy to be tempted to spend extravagantly once you see the enviable lifestyle people present online. While we can acknowledge the temptation, we strongly recommend curbing this desire and living below your means. Save more and spend sparingly now so that you can have a financially secure future.

7 important tips every young African professional needs to achieve financial success

The surest way to ensure that you achieve financial success is by starting early. This is why Business Insider Sub-Saharan Africa has compiled this list. Here are seven important tips every young professional needs in order to achieve financial success:

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