How to adapt your financial plan as you age

LIFE rarely stands still. As we move from our first pay cheque to retirement, our responsibilities shift, and so should our financial priorities. But where do you start? Your financial circumstances will look very different at 25 than at 55, which is why it's important to understand what to focus on at each chapter of our lives.

- JESSICA BEATTIE

Many young South Africans enter the workforce while juggling student debt, car repayments, and the costs of living independently for the first time. This is the time to focus on the basics: understanding your payslip and tax obligations; finding the right medical cover for your needs; creating a realistic budget; building an emergency fund; and insuring the important things first.

It's essential to understand that your income is your most valuable asset. It pays for everything else in your life, from food and housing to healthcare. Protecting your ability to earn an income when illness or injury strikes should be your number one priority from your very first payday.

Here, priorities typically broaden to include milestones such as buying a home, getting married, or starting a family. With dependents in the picture, life cover becomes important. If someone relies on your income, you need to know they'll be taken care of if you pass away.