Starting your career is an exciting time, but it can also feel overwhelming. Planning for the future is essential to ensure that you build a stable and successful life. Here is a simple checklist to help you get started on the right foot as you begin your working journey in South Africa.

1. Set Financial Goals

• Budgeting: Start by creating a budget. List your monthly income and expenses to understand where your money is going. Apps like 22seven can help.
• Saving: Aim to save at least 20% of your monthly income. Open a savings account if you don’t already have one.
• Emergency Fund: Save enough to cover 3-6 months' worth of expenses in case of emergencies like job loss or unexpected expenses.

2. Understand Your Payslip

• Deductions: Learn about the deductions on your payslip, such as tax (PAYE), UIF, and any contributions to retirement funds.
• Net Income: This is the amount you take home after all deductions. Plan your budget based on this amount.

3. Open a Bank Account

• Choose Wisely: Compare different banks and choose one that offers low fees and good customer service. Popular options in South Africa include FNB, ABSA, and Capitec.
• Online Banking: Set up online banking to easily manage your account, pay bills, and transfer money.

4. Manage Debt Wisely

• Student Loans: If you have student loans, understand the repayment terms and plan how to pay them off.
• Credit Cards: Use credit cards responsibly. Avoid carrying a balance to prevent high interest charges.

5. Invest in Insurance

• Health Insurance: Medical aid schemes like Discovery Health or Bonitas are crucial to cover healthcare costs.
• Car Insurance: If you own a car, insure it to protect against theft, accidents, and damages.

6. Plan for Your Retirement

• Pension Fund: If your employer offers a pension fund, make sure you understand how it works and contribute to it.
• RA (Retirement Annuity): Consider investing in an RA to supplement your retirement savings. Companies like Allan Gray and Old Mutual offer RAs.

7. Build Your Credit Score

• Credit Score: Your credit score is important for future financial needs like loans and mortgages. Pay your bills on time and manage debt responsibly to build a good score.

8. Continuously Educate Yourself

• Skill Development: Keep learning new skills to advance in your career. Look for online courses, workshops, and training programs.
• Networking: Build a professional network through platforms like LinkedIn and by attending industry events.

9. Consider Property Investment

• First Home: Start thinking about buying your first home. Research the property market and consider saving for a deposit.
• Rent vs. Buy: Weigh the pros and cons of renting versus buying based on your financial situation and future plans.

10. Legal and Administrative Tasks

• Will: Draft a simple will to ensure your assets are distributed according to your wishes.
• Tax Returns: Learn how to file your tax returns. The South African Revenue Service (SARS) website offers guidance on this.

Conclusion

Starting your career is just the first step in your journey to financial independence. By following this checklist, you can build a solid foundation for your future. Remember, it's never too early to start planning and making smart financial decisions. Keep educating yourself and seek advice from trusted professionals when needed.

Good luck on your journey, young South African professionals! Your future is bright, and with careful planning, you can achieve all your dreams.