For individuals such as myself, school is finally over and we have officially started contributing to the working world. Whether it is to pay for university fees or to have extra money for a gap year, work is now a part of our lives. However, when joining the working world, there are some factors that we need to take into consideration.
As you are now earning an income, tax will come into play – this will be in the form of deductions from your salary. For that to happen, a tax number is required so we need to register with South African Revenue Service (SARS). We should do this about three weeks before we commence employment as the turn over time is roughly two weeks. This tax number will be our number throughout our lives and certifies us as registered taxpayers.
As you know, when you are earning a salary, you are going to need a bank account to house your earnings. This is when a saving account becomes very important. Go to your preferred bank and open up a bank account and also ask for advice about savings options. In addition, find out if your company offers any benefits (like staff rates) with a specific bank.
Once that is done, you need to start thinking of how you can protect your money and assets. In this regard, insurance is very important. You should contemplate acquiring short-term insurance for assets such as vehicles and household items. It is not pleasant to think about getting disabled but unfortunately, while it is not likely… it is a possibility – if an unfortunate twist of fate occurs.
Disability cover should, therefore, be acquired so if something does happen to you, you would be able to still sustain yourself. It is best for you to speak to a financial advisor, as he or she is best qualified to advise you about what sort of insurance best suits your needs.
Joining the working world is a big step-up in tempo. Get organised and financially-conscious from a young age – it will pay dividends in the long run.
By Devon Ibbetson
This article was adapted for Smart Money and was taken from: https://money101.co.za/joining-working-world/