Advice to my 23 year old

Here are some truths to be aware of while you’re young.

- Craig Torr

Thirty two years since graduating from university, it is a somewhat challenging task to look back at my 23-year-old self and dispense financial advice to the man I was then. Standing on the precipice of a career in financial services, the proud owner of an old Opel Kadett and a second-hand washing machine, it is relatively easy to be critical of past financial decisions.

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

Patience is a virtue. Wealth is built slowly and deliberately and comprises so much more than your first big pay cheque. Be patient for financial success. As a recent graduate, you are used to living a frugal lifestyle, being creative with your budget and living within your meagre means. My advice is to continue living frugally even after your first proper pay cheque.

2. Insure your greatest asset

As a young, qualified professional with no real net worth, your greatest asset is your future earning potential and this needs to be insured. The greatest gift you can give to your future self is to take out an income protection benefit while you are young and healthy. In the face of illness, accident or disability your income will be protected until you turn 65, ensuring that you don't become a financial burden on others.

3. Start saving with your first pay cheque