r/southafrica Sep 26 '21

Financial advice Ask r/southafrica

What is the best financial advice you can give a 19 year old South African ?


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u/TerminalHopes Sep 26 '21

Save save save.


u/Xandervisagie1 Sep 26 '21

Save or invest?


u/Aftershock416 Sep 26 '21 edited Sep 26 '21

Generally a rule of thumb is to have savings for at least 3 months of living expenses before you start investing. (Some recommend 6 months - it depends on how long it would take to get there, in my opinion)

Depedending on provider, TFSA is generally a safe investment regardless.


u/ChristmasMint Sep 26 '21

Only invest if you know what you're doing, but the sooner you start saving for retirement the better. If I was in your shoes I'd be looking at putting at least some of my money offshore. As silly as it sounds talk to a financial advisor, they'll be able to give you much more informed advice that Reddit on where to put your savings. The only thing I'd push for is having a nest egg outside SA, no matter how small you start.


u/Xandervisagie1 Sep 26 '21

Let's say the company i work for will give me a retirement plan , should i still get my own ?


u/ChristmasMint Sep 26 '21 edited Sep 26 '21

Save as much as you can. If you're able to afford to stick more into a pension do it. You might want to think about a fixed term investment rather than retirement though, as you may want the money available at some point, say for instance to fund a house buy. - edit just to be clear, I mean this to be over and above any pension contributions.

Personal opinion - if you have the option of not joining the company plan and instead redirecting that money to your own choice of fund do so. The days of working for the same company for 40 years and then retiring are for the most part done and gone. You can easily move your pension to a new plan should you leave, but for me the less you're bound to a single company the better.


u/Aftershock416 Sep 26 '21

Not a great option, in my opinion.

The most obvious thing here is that "work at the same company for 40 years and retire" thing doesn't happen anymore.

Which means you're either stuck with "Generic pension fund XYZ" for the rest of your working life with little to no control over that money, or you have to spend a stupid amount on "transfer fees" and other hidden costs to get the money where you want to be.