South Africans need to shift their focus from mere financial education to building and instilling habits that foster long-term stability, according to Wanita Isaacs, Head of Key Accounts, Momentum.
Isaacs said: "When you speak to your financial adviser, they should tell you that it’s never about how much you earn. It’s about how effectively you manage what you have."
"Of course, financial education is needed but being mindful about your money on a daily basis and developing habits like saving, keeping to your budget, and avoiding unnecessary debt make all the difference. These habits lay the foundation for resilience so you can weather hard times and still work towards your financial goals."
Momentum/Unisa Household Financial Wellness Index showed that 33% of financially stressed consumers feel they lack control over life’s challenges, while 52% of financially secure individuals believe they can actively improve their situations.
Isaacs outlines five important ways households can achieve financial stability.
Develop sound habits
The habit of saving, even in small amounts, can help households create a financial safety net for unexpected expenses or a financial crisis, according to Isaacs.
This is particularly relevant as many South Africans continue to struggle to live within their means.
To enhance your savings habit, focus on medium- and long-term investments that allow your money to grow, while also exercising the discipline to curb impulse spending, which is crucial for the success of these habits.
Isaacs said that impulse purchases during sales can derail financial goals therefore consumers are urged to keep to their budgets and prioritise long-term savings.
Seek professional advice
Financial advisers can offer consumers tailored solutions to help them manage complex financial decisions, have clarity, and avoid costly mistakes.
"It’s too easy to delay seeking advice until it’s too late. Having expert guidance early can make a significant difference in achieving your financial goals," Isaacs said.
Review your finances regularly
According to Isaacs, regularly assessing financial progress is vital for adapting to changing circumstances.
Isaacs recommends monthly or quarterly reviews, along with annual check-ins with a financial adviser, to ensure alignment with current realities and long-term aspirations.
Start retirement planning early
Isaacs said that many South Africans risk outliving their retirement savings due to a lack of planning.
Even small contributions can grow substantially over time, which highlights the importance of consistency and early action.
Minimise your reliance on credit
Credit offers a tempting short-term solution but can lead to long-term financial strain, according to Isaacs.
Consumers should prioritise the repayment of high-interest debt like credit cards and personal loans, to regain control over finances as well as build greater financial freedom.
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