This Mandela Day, spend 67 minutes organising your financial affairs.
Mandela Day is a call for action for individuals to take responsibility for changing the world into a better place, one small step at a time, just as Mandela did. Financial planning offers a profound ripple effect into society as households are able to build and pass on wealth over time.
This year’s FinScope Consumer Survey, by the Finmark Trust, found growing financial vulnerability and over-indebtedness amongst South Africans. An estimated 12 million adults are over-indebted, and 75% of adults who borrowed money in the past year used credit for essentials like food.
By putting financial planning basics in place, we can start to break the cycle of poverty and support greater resilience for families and communities.
“Many of us know the pain of friends or family who find themselves penniless when everything seemed fine. Most South Africans are one unexpected event away from severe financial distress. Putting in just one hour now to build good money habits can have a profound impact later,” says Ralene Grobler from Momentum Financial Planning.
According to her, Momentum’s latest BMR (Bureau of Market Research) household finance survey found that 77% of South Africans rely on their own knowledge for financial decisions, and 12% ask family or friends for advice. Fewer than 10% consult professional financial advisers. Even among middle-class households earning over R40 000 a month, only 39% use a professional financial adviser. “Yet those who do have more wealth and investments, nearly 10 times that of their peers. This clearly shows that professional advice can make a meaningful difference in building and protecting long-term financial wellbeing.
“When more people have financial security, they can contribute more meaningfully to society and are less vulnerable when things go wrong.” Says Grobler
Many people avoid financial planning because it feels overwhelming. But sitting down with a professional adviser can help bring clarity. With the right guidance, you can start tracking your spending, paying down debt, reducing stress, and making real progress towards your goals.
“We must invest in self-care to be resilient enough to support others. We often put our own needs last, but ensuring we’re living within our means and providing for the future allows us to retire with dignity, and our loved ones can pursue their own dreams without worrying about our wellbeing,” says Grobler
Where to Begin: 4 Steps to Take in Your 67 Minutes
- Write down your financial goals. Do you want to buy a house or car, remodel your kitchen, save for your child’s education, or take an overseas holiday? Your adviser can help you set up investments to achieve these goals.
- Start or top up an emergency savings fund. Aim for at least three months’ salary in a savings account so that you’re not caught short by unplanned expenses.
- Make a plan to pay off your debt. Choose the smallest debt first and put extra money towards it for a few months. Once that debt is paid off, redirect those payments towards the next-smallest debt, and keep going until you’ve paid off everything.
- How do you feel about your retirement planning? Consider increasing your contributions. Even an extra couple of hundred rands a month makes a long-term difference.
Your financial adviser can help you ensure that you are on track to reach your financial goals. Because everyone’s circumstances are unique, an adviser can provide expert guidance tailored to your situation and goals.
“If you haven’t met your adviser this year, schedule your annual conversation and spend 67 minutes putting your financial affairs in order,” says Grobler
