The financial advice every sugar baby should follow

Description: With the intention of reaching out to its younger client base, Old Mutual decided to create content linked to trending social media hashtags. This particular piece was intended to jump on the #blesser trend, which enjoyed quite a lot of attention for some weeks. While the client ultimately realised that not all hashtags make for appropriate content, this release was fun to write.

Unpublished

For some people, being with a sugar daddy or sugar momma is a sweet deal that takes care of a lot of money problems. From being spoilt with expensive gifts, to having someone who regularly gives you money to pay the rent or “buy yourself something nice”, getting the right “blesser” certainly has its perks.

However, John Manyike, Head of Financial Education at Old Mutual warns that becoming comfortable with the luxuries that a blesser provides is easy, and unfortunately this means that far too many sugar babies neglect to plan for their long-term financial security in the event that they suddenly find themselves without SO-money.

“The sad truth is that these relationships can and do end at some point, be it over irreconcilable differences, or because you selfishly turned 26. Whatever the reason for a breakup, your number one priority is always to make certain that you can take care of yourself when your bae is no longer footing the bill for your rent and other essentials.”

With this in mind, Manyike outlines a few crucial steps that every sugar baby should take to ensure they still have financial prosperity long after their milkshake stops bringing all the rich boys to the yard.

1. Have an emergency fund

Every person needs cash stashed away for emergencies, and especially when you depend on something like a relationship to provide for the bulk of your financial needs, an emergency fund can be your safety net in more ways than one.

To start, it can help with actual emergencies, such as unexpected vehicle repairs, and it can also be a valuable income supplement if your blesser decides to drop you. If you are earning at least some of your own cash and your basic expenses are paid by a blesser, use your money to build up three to six months’ worth of living expenses in an emergency savings fund.

2. Pay off your debts

Credit card debt and personal loans have some of the highest interest rates around, and you should jump at the chance to pay them off early when you have some extra money. Not only will you save a lot of money on the interest that you would otherwise have to pay, but it will also ensure that you don’t have to pay those from your emergency fund if your “arrangement” ends.

3. Keep sight of your career plans

Saving money is important, but so is ensuring that you have a steady income stream in the years to come. Make sure that you spend your time constructively by putting at least a portion of your spare cash into improving yourself and your chances of finding gainful employment.

Start a savings fund for university or to pay for additional qualifications, set a time frame for when you want to achieve that goal and make sure that you put away as much as you can for it at the start of each month. Alternatively, your blesser might also be open to helping you pay for an education.

4. Don’t forget about retirement

Your blesser may not want to think about you getting old, but you should. If you don’t have one yet, take out a retirement annuity as soon as possible, and pay as much of your left-over cash into it as possible.

“It is important to understand that your financial circumstances can change incredibly quickly if you do not take control of your own financial wellbeing. Working just a little smarter with your money when things are going well, will make all the difference to your future,” Manyike concludes.