Janet Washamba Haufiku : Data analyst and writer
You’re 25, and your first pay cheque just landed. Your mind races: should you finally buy that dress you’ve been longing for? Send your mother a gift that says, “I appreciate you more than words”? Or maybe take that long-overdue trip to the coast and finally relax? That first pay cheque hits like dynamite; suddenly, Europe feels within reach, dinner at your favourite restaurant is doable, and even that $15,000 apartment in Kleine Kuppe doesn’t seem so far away. But just like real dynamite, money is powerful and needs careful handling. Spend it recklessly, and all that potential fizzles. The smart move? Saving and investing, putting your money to work so it grows while keeping you secure. Here’s what every 25-year-old should know about making their money work for them.
There’s something surprisingly rewarding about tracking your spending. In our 20s, it’s easy to spend money on anything and everything. But before thinking about bank accounts and savings plans, the first step is simply being organised. Writing down every expense, even the small ones, in a journal or an app not only keeps you accountable but also helps you see your spending habits clearly and spot where you can improve.
Saving is your first step to financial freedom.
Saving takes a little emotional maturity, and that maturity brings discipline. The first step is to set a clear goal or savings plan. Know exactly what you’re saving for, and name it. Whether it’s a house, a car, or a solid laptop to power your career, giving your savings a purpose makes it real and motivating. And here’s the rule: once your savings are named, they stay that way. You don’t dip into your education savings for funeral cover or raid your house fund for a weekend trip. A named saving is a commitment…treat it as untouchable!
Start saving early. Yes, it sounds cliché; your grandparents have definitely said it. And yes, you’ve probably brushed it off thinking, “I’ll start next month.” But the truth is, next month will come, and without a plan, your expenses will always scream louder than your income. That friend who’s always ready to help others in a pinch? They’re not stingy; they just started saving sooner. Here’s another secret: it doesn’t matter how much you start with. Even N$200 a month can make a difference. What matters is consistency, because real financial security isn’t about luck; it’s about building the habit while you’re young.
From saving to investing
Saving is the first step; it gives you stability and peace of mind. But saving alone won’t build wealth in the long run. Money that sits in a bank account slowly loses value to inflation. For example, Namibia’s headline inflation averaged around 7% in 2022 before moderating to 3-4% in 2023. If your savings account yields only 2% in nominal interest, your real return is negative. In other words, your money might look like it’s growing in numbers, but in reality, it’s losing buying power.
That’s where investing comes in. Investing simply means putting your money into assets that can grow over time. Think of it as making your money work for you instead of just sitting still. There are different ways to do this. Stocks (or equities), for example, give you ownership in a company. If the company does well, your money grows too, but if it struggles, you can lose value. Bonds are like loans to governments or companies. They usually pay steady interest, so they’re safer than stocks, but the returns are often smaller. Unit trusts are like joining a team; you pool your money with other investors, and a professional spreads it across many stocks and bonds. This makes it easier for beginners and lowers the risk compared to betting on one company. Real estate is about owning property, like land or a house. It can bring in rent and increase in value over time, but it also ties up a lot of money and isn’t easy to sell quickly.
The important thing is understanding what you’re investing in. Every option has its risks and rewards, so don’t just put your money somewhere because others are doing it. The more you understand, the better choices you’ll make for your own goals.
You don’t need thousands to start an investment. Even a few hundred, saved and invested consistently, can open the door to growth. What matters most is time: the earlier you begin, the more compounding works in your favour. Think of it as planting a tree; the sooner you plant it, the sooner it gives shade.
But remember: investing isn’t a quick money grab. It’s a long game that takes patience, consistency, and an open mind. Learn about your options, understand their risks, and always diversify. Don’t rush into debt to look rich; save first, and buy with cash. And don’t let your money sit still forever; save to invest in something meaningful.
At 25, the most important step isn’t how much money you have; it’s the habits you build. Start saving early, name your savings, and protect them. Even small amounts, saved consistently, can grow into real security. Once your savings are strong, start investing to make your money work for you. Learn about different options, understand the risks, and diversify. Remember, investing isn’t a get-rich-quick scheme; it’s a long game that rewards patience, consistency, and smart choices. Set clear goals, surround yourself with people who inspire and challenge you, and keep learning. The habits you build now will shape your financial freedom for decades to come. Start small. Start early. Keep going, and let your money grow with you.
How young Namibians are making money online
Online Boutiques
From bags to shoes and clothes, young Namibians have taken on the fashion industry through the popular “order with me”. Below are some boutiques you can check out:
@sassy_styles
@ester_s_closet
Content Creation
Whether it is a wedding, proposal or birthday party, you no longer have to hire a professional videographer to capture moments on your special day because you can simply have a content creator who is well equipped with the latest iPhone and a ring light. Not only do you get content in real time, but online SBWL’ers can also watch your day unfold on Instagram. Here are some of our faves in the industry:
@tge_creatives
@natangwe_events
@visualsbyhofni
Additionally, although not fully monetised yet (meme Netumbo’s Business Unusual Administration is working on this), there are influencers who use YouTube to share content on travel, lifestyle and finance. Such as:
@ItsWoven
@ndapanda
@blinnkie
Virtual assistance
Young Observer has seen posters of young people offering virtual assistance to big-shot corporate huns and gents or simply to business owners who do not have the time to organise their operations, including scheduling meetings. All you need is a computer and uninterrupted time.
