A tree that grows from a money bottle and a hand that gives a coin. Tree. Financial ideas and growing economic direction.
33% of financially stressed individuals reported feeling they have little control over life’s challenges, while 52% of financially secure individuals believe they can always take action to improve their situation.
This information is contained in a recently conducted research by Momentum with a group of their clients to explore financial wellness in households.
Momentum says this contrast reveals a critical lesson – how good financial habits can foster resilience and peace of mind.
Momentum financial adviser, JJ Van Wyk, says financial success is not only measured in rand value but rather in how we make smarter money moves with what we have available.
“Building the right habits helps you to create a foundation for long-term financial security, no matter the economic climate,” says Van Wyk.
As the country continues to wade through a cost-of-living crisis, Van Wyk offers five key habits to put any household on the road to financial success:
Save, invest, and avoid impulse purchases
Van Wyk believes the cornerstone of financial stability is saving and investing. The Momentum/Unisa Household Financial Wellness Index reveals that many South Africans struggle to live within their means. By developing a habit of saving, even in small amounts, financial stress can be whittled away bit by bit.
“Impulse spending can derail your financial goals. By committing to a budget and prioritising your savings, you create a safety net for the unexpected and build wealth over time,” Van Wyk says.
Seek professional advice
Financial decisions, especially major ones, can have long-lasting implications – making and breaking future aspirations. Van Wyk says it’s fine to accept the fact that we can’t know everything about the increasingly complex world of finances. By consulting with a financial adviser, he says you can save yourself from costly mistakes and gain expert clarity on the best way forward according to your household’s unique circumstances.
“People often delay seeking advice until it’s too late. Having an expert guide can make all the difference in achieving your goals. It is extremely important to seek out and work with a financial adviser you trust and feel comfortable with, one who understands your needs perfectly,” Van Wyk says.
Review your finances regularly
Like it or not, money drives our daily lives, so we need to plan around it. According to Van Wyk, establishing a routine to assess your financial progress is essential. That means regular reviews, either monthly or quarterly, to ensure your plans align with your financial goals and current reality.
“Annual reviews and a financial needs analysis with your financial adviser are a must. They help you stay on track and adjust to life’s curveballs,” says Van Wyk.
Avoid retirement mistakes
Many South Africans face the risk of outliving their retirement savings due to insufficient planning. Van Wyk stresses the importance of starting early and being consistent.
“Retirement planning should begin as soon as you start earning. Even small contributions now can lead to significant growth over decades,” he says.
Don’t be a credit junkie
With easy access to credit, it’s tempting to borrow for short-term wants. However, the cost of borrowing can quickly spiral out of control.
"Make it a habit to set aside a portion of your income to pay off debt, starting with either the smallest balance or the highest-interest debt, such as credit cards or personal loans – whichever works best for your budget. The faster you eliminate debt, the greater your financial freedom and control over your finances," says van Wyk.
Cultivating the habits of success
Achieving financial freedom requires deliberate actions and a commitment to change. The Momentum/Unisa study found that only 15% of households are truly financially literate. Van Wyk believes financial education, paired with disciplined habits, is the key to empowerment.
“Success is not about perfection; it’s about progress. Start small, be consistent, and watch your financial future take shape. This is the journey to success that we should all be on,” he says.
PERSONAL FINANCE