10 steps to steer through SA's wavering economy in 2024

As we commemorate Worker’s Day, Consult would like to honour all the hard-working South Africans who keep the wheels of the economy turning, by providing them with 10 steps to manage their hard-earned money, to steer through the wavering economy with the help of financial expert, George Mahlakgane - Financial Adviser and Franchise Principal at Consult.

1. Everyone can rise beyond and achieve financial success

Financial success is not limited to one social class. Everyone with a financial goal in mind can put themselves in a better financial position than they were previously with the help of an adviser. Having an adviser that understand your financial situation is important in helping you make the right financial choices and getting you investment options that you can afford.

2. Know the difference between wants and needs

What’s good to you isn’t always what’s good for you. Many times, we go overboard with our spending, which is mostly on the things we want as we tell ourselves that we deserve them because we work hard for our money. Although it’s never wrong to spoil yourself from time to time, it’s more important to know that certain ways of spoiling yourself are unnecessary.

3. Realise that there is more than one path on your journey to achieving your financial goals

The joy of having an adviser lies in them presenting you with multiple ways to manage your funds and advising you on how and where to invest. They have a variety of effective ways to help you achieve your financial goals with custom financial plans that will help you to do so. A good method for saving is the 60/30 rule – 60% of the earner’s salary should be directed towards building your savings, investments and paying off your debts. 30% of the earner’s salary should be used on necessities in order of importance, such as healthcare, food, housing, transport etc. 10% of the earner’s salary should be used for luxuries or rather items that you can live without but desire to have.

4. Make informed financial choices

We sometimes make financial choices based on trends and on what seems to be working well for others, therefore it is important to be able to see through all the clutter and seek holistic advice and sustainable investment options from a financial expert. We often attach emotions to our money and that leads us towards making hasty financially uninformed decisions. You need to remove all emotions when it comes to dealing with your finances and replace it with knowledge.

5. Invest in your future for a secured tomorrow

Tomorrow is never promised, but you don’t have to struggle with the economy, instead you can thrive in it. Our economy is ever-changing and it is important that your assets are secured with effective investments. Saving without a goal can lead to unnecessary purchases, so set short-term goals like paying for a credit card, mid-term goals like saving for a trip or a car deposit and long term goals like retirement annuity or down payment on a house. It’s important to track your spending and make sure you are not making unnecessary purchases.

6. Learn how to diversify and grow your portfolio

With the ever-changing economy, an investment that was good yesterday will not be good tomorrow so it’s important that you consult a financial expert who is able to diversify and grow your portfolio so that you’ll have multiple streams of income. A diversified portfolio helps your overall investments to absorb the shocks of any financial disruption, providing the best balance for your saving plan.

7. Change the thinking that you don’t need financial advice

They say that ignorance is bliss, but peace is not something that you will have if you attempt to reach your financial goals without financial literacy. It’s important to know how to individualise your financial goals and plan according to your income with expert advice.

8. Change your perception on financial advisers

Many people have the wrong idea of financial advisers and believe that they only work with the rich, but the truth is that advisers cater for all people from different social classes and different backgrounds. Consult excels with a diverse team of advisers who are ready to cater for the needs of clients from all walks of life, therefore the client will be able to relate to the adviser.

9.?Seek financial advice

It’s human nature to not want to be told what to do with our hard-earned money, that’s why people are wary of going to an adviser for a financial plan. Consulting an adviser with your own financial plan will be a great foundation to start discussing the type of investments that will suit you best, as well as give you clarity on why some investments will not be suitable for you.

10. Stay committed to managing your expenses

Many people suffer financially because they do not understand how to manage their finances during a socio-economic crisis. Money without purpose is money that will be spent and that is never a good thing. Create a realistic financial plan and time frame for achieving your financial goals and stick to it.

Seeking financial literacy and expert financial advice is key to be able to manage your hard-earned money, so that you will be able to thrive in any economy. Make the #ConsultMindShift and #RiseBeyond your own limitations. Seek financial literacy today.