The rules for building wealth in your 20s in South Africa

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The rules for building wealth in your 20s in South Africa
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Citadel, the specialist wealth management company, asked a sample of young professionals between the ages of 21 and 24 to anonymously submit their most pressing financial questions on how to start building their wealth in their twenties.

With so many South African graduates working as digital nomads or in other careers abroad, it is important to note that the South African tax system states that if you are a South African resident , you will be subject to tax on all local and foreign income you receive, regardless of where it is paid and where the source of the income is. This is called the Worldwide basis of taxation.

Your first paycheque is your first step to achieving financial independence – a space we all strive to achieve in our life and into retirement. From your first paycheque, you need to take a long-term view on investing for the future by setting yourself long-term goals. Property can be a good investment if it is in an area where property prices are increasing. Just remember that property should not be considered a passive investment. Areas change, properties need to be maintained, and you need to be aware of what is happening in the property market and economy so you can actively manage your properties.There is nothing wrong with having a comfortable life. Just don’t lose sight of the big picture.

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