“When you speak to your financial adviser, they should tell you it is never about how much you earn. It’s about how effectively you manage what you have.”
Many people believe their income will make them wealthier; however, financial experts say disciplined financial habits can relieve many of their financial distress.
Head of Key Accounts at Momentum, Wanita Isaacs says South Africans need to shift their focus from mere financial education to building and instilling habits that foster long-term stability.
“When you speak to your financial adviser, they should tell you it is never about how much you earn. It’s about how effectively you manage what you have.”
Financial education
Isaacs adds that financial education is needed, but being mindful of money daily and developing habits like saving, sticking to a budget, and avoiding unnecessary debt make all the difference.
“These habits lay the foundation for resilience so you can weather hard times and work towards your financial goals.”
Momentum Unisa Household Financial Wellness Index shows that 33% of financially stressed individuals feel they lack control over life’s challenges.
In contrast, 52% of financially secure individuals believe they can actively improve their situations —demonstrating the role of good financial habits in fostering resilience and peace of mind.
She gives a list of essential actions for households to achieve financial stability:
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Develop sound habits
Isaacs says a habit of saving, even in small amounts can help households establish a financial safety net for unexpected expenses.
This is especially relevant as many South Africans continue to struggle to live within their means.
“Building on this habit by investing for the medium and long term allows your money to grow more. And developing the discipline to curb impulse spending is critical to the success of these habits.”
Seek professional advice
Isaacs advises people to get financial advisers who can offer tailored solutions for managing complex financial decisions, providing clarity, and preventing costly mistakes.
“It’s too easy to delay seeking advice until it’s too late,” Isaacs cautions. “Having expert guidance early can make a significant difference in achieving your financial goals.”
Review finances regularly
She adds that regularly assessing financial progress is important for adapting to changing circumstances.
This can be done monthly, or quarterly. Isaacs recommends pairing these reviews with annual check-ins with a financial adviser, to ensure alignment with current realities and long-term aspirations.
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Start retirement planning early
She emphasises the need to start a retirement fund early in life, as she is of the view that many people risk outliving their retirement savings due to inadequate planning.
“Even small contributions now can grow significantly over time, highlighting the importance of consistency and early action.”
Minimise reliance on credit
She adds that credit offers a tempting short-term solution but can lead to long-term financial strain.
It is important to prioritise repayment of high-interest debt, such as credit cards and personal loans, to regain control over finances and build greater financial freedom.
Resilience amid recovery
“Statistics South Africa reported a 0.3% contraction in the third quarter of 2024, while household consumption grew by just 0.5%. However, strong consumer activity points to a potential rebound.
“Success is about progress, not perfection. Small, disciplined steps—like saving, budgeting, and avoiding impulse spending — provide long-term stability and resilience.”
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