How Financially Fit Are You | Legacy BlueStar | Sanlam Financial Planners Bellville, Cape Town

Financial Planning

How financially fit are you?

Financial fitness, like physical fitness, requires a well-structured plan, clear goals, and a companion to keep you accountable and focused. Sherwin Govender, business development manager at Glacier by Sanlam, provides some pointers.

Your financial guide

10 Steps to financial fitness

1. Know what your money needs to do for you. Decide what your financial goals are: for example, buying a house, going on an overseas trip, a good education for your children, or perhaps having enough money in retirement.

2. Think about your relationship with money. Is your approach to money positive or negative? When you become aware of your relationship with money, you can work on changing it for the better.

3. Set goals. Goals are very personal and different for everyone. An effective goal is specific, achievable and has a timeframe.

4. Manage your income. Money comes from three places – earnings, savings and debt. You may have limited control over how much your income can grow, but you do have control over your debt and savings.

5. Draw up a budget and stick to it. If you are in a financially stressful situation, check your budget item by item. Categorise your budget items into bare necessities, flexible necessities and “quality of life” expenses.

6. Managing income is not about denying “quality of life” expenses. It is simply about being smarter about these expenses.

7. Develop a healthy fear of debt. Debt is the enemy of financial fitness. If you are using debt to cover living expenses, pay off other debt or finance an unaffordable lifestyle, you are in trouble. Immediately seek help from a financial adviser to assist you with a debt reduction plan.

8. Know the difference between being rich and being wealthy. While being rich is the “show” of being wealthy – expensive clothing, cars or real estate – being wealthy means being as close as possible to zero debt.

9. Get a coach. Developing financial fitness requires the help of an appropriately authorised financial adviser. Everyone needs one.

one last step

10. Take action

Doing research and asking questions are important, but until you take steps to put your plan into action, financial fitness remains just a good idea. Speak to your financial adviser today.

Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider.

Sanlam Life is a licensed life insurer, financial services provider and registered credit provider (NCRCP43)

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