1. Live frugally while you are still used to living frugally

As a recent graduate, you are already accustomed to living on a tight budget. The advice is to continue this frugal lifestyle even after receiving your first paycheck, as wealth is built slowly. Instead of splurging, prioritize essential financial goals such as savings, debt repayment, and insurance. The idea is to delay gratification and focus on long-term financial health.

2. Insure your greatest asset: your earning potential

At 23, you might not have significant financial assets, but your future earning potential is your biggest asset. The advice stresses the importance of securing income protection insurance early on. This ensures that, in the event of an accident, illness, or disability, you will still have an income until retirement age (65). This protects both you and your loved ones from financial hardship.

3. Start saving with your first paycheck

Developing a saving habit early is crucial. Setting up an automatic debit order from your first paycheck helps build discipline. Although the amount saved may seem small initially, the focus is on creating the habit of regular saving and investing. Over time, this consistent effort pays off, both financially and emotionally, as you experience the satisfaction of financial security.

4. Attack debt aggressively

Debt, particularly student loans, is often unavoidable for young professionals. The advice is to prioritize paying it off quickly to reduce long-term interest costs. The author suggests avoiding unnecessary debt, such as car loans with unfavorable terms like balloon payments. Negotiating the best possible terms on any loan is also advised to minimize financial burdens.

5. Negotiate everything

From your salary package to major purchases like property, negotiation is essential. The author encourages being informed about market values, whether it’s for your skills or property, so that you can negotiate from a strong position. Negotiation extends to legal fees, bank charges, and loan interest rates, where small savings can accumulate into significant amounts over time.

6. Build a good credit rating

A solid credit rating is important for future borrowing. Any negative credit event, such as missed payments, can harm your ability to access loans or credit at favorable rates. Keeping your credit record clean is crucial for financial success, as it impacts your future opportunities.

7. Stay on the right side of SARS

Understanding and paying taxes properly is a vital part of financial responsibility. Taking advantage of tax deductions, like retirement fund contributions, can help reduce your tax burden. Registering for e-filing and filing your own returns empowers you to manage your taxes more effectively.

8. Stalk yourself online

In today’s digital age, your online presence matters, especially as you transition from student life to a professional career. The advice is to curate your social media profiles so they reflect the professional image you want employers and colleagues to see, minimizing any risks to your reputation.

9. Friends don’t let friends borrow money

Lending money to friends can strain relationships, and unpaid loans often lead to resentment and broken friendships. The advice is to avoid this situation altogether, as the emotional toll is rarely worth the financial gain or the risk of damaging important relationships.

10. Buy quality, not quantity

It's tempting to opt for cheaper alternatives when money is tight, but this often leads to higher costs in the long run due to the need for frequent replacements. The author advises saving for high-quality items that last, teaching the lesson of delayed gratification and the long-term value of quality.

11. Buy experiences, not just possessions

The article warns against equating wealth with material possessions and instead suggests investing in experiences. These create lasting memories and personal growth, which, unlike material goods, contribute to a more meaningful and balanced life.

12. Become a master at something

Professional success comes from becoming an expert in your chosen field. By honing a specific skill or knowledge base, you become indispensable in your profession. Mastery in a particular area differentiates you from others and increases your economic value, ensuring long-term job security and income potential.

13. Have a small, intimate wedding and stay married

Weddings can be incredibly costly, and the advice is to keep them small and affordable. Additionally, divorce is financially draining, even if it’s amicable. The author emphasizes the importance of choosing a life partner wisely and working hard to maintain the marriage, as this contributes to both emotional and financial stability.

14. Earn while you sleep (create passive income)

Time is limited, and relying solely on active income (where you exchange time for money) caps your earning potential. The article encourages finding ways to earn passive income, such as through investments or by monetizing your expertise. This allows you to build wealth without being tied to working hours, giving you greater financial freedom.

15. Do small things with great love

Giving back, whether through money, time, or expertise, brings fulfillment and purpose to life. The author quotes Mother Teresa, emphasizing that small acts of kindness, done with love, make a meaningful difference. Giving to those less fortunate enriches not only the recipient but also your own life, providing balance beyond financial success.

These 15 pieces of advice aim to build long-term financial security while fostering personal growth, happiness, and purpose.