Tips to reduce your money stress and build wealth

Millions of South Africans are at their wits’ end. For many, it’s starting to feel like financial freedom is an unattainable dream reserved only for the wealthy. Just when we thought we were handling the cost-of-living crisis, VAT goes up.

What if making small, thoughtful choices today could empower you to take charge of your finances and start living the life of your dreams?

Understanding money isn’t always as simple as it seems.

The latest Momentum/Unisa Household Financial Wellness Index reveals that only 15% of South African households are financially literate, even though nearly half believe they have a solid grasp on their finances.

According to Esther Devar, financial adviser at Momentum Financial Planning, financial security isn’t just about having money; it’s about living debt-free, building savings, and making choices based on your goals instead of your bank balance. 

“The good news is that achieving it is possible, and it starts with small, deliberate steps today,” says Devar. “I know managing money can feel overwhelming with rising prices and an uncertain economy. But to be financially free, you need to eliminate debt, save for the future, and make smart investments.

“Your investment plan should be aligned with your goals and how much risk you're comfortable taking. Whether you’re saving for a house, your child’s education, or retirement, it’s important to start early and stay focused,” Devar says.

Despite the desire for financial freedom, many people struggle with common mistakes that keep them from achieving it. Devar looks at the most common financial mistakes and how you can avoid them:

• Not knowing enough about money: Many people don’t take the time to learn about managing their finances. Start by reading, taking courses, or consulting with a financial adviser.
• Avoiding financial responsibility: Some prefer to live in the moment rather than plan for the future. Developing financial discipline and long-term thinking will pay off in the end.
• Spending on wants, not needs: Prioritising luxuries over clearing debt can hold you back. Focus on paying off debt first.
• Not tracking spending: Without a budget, it’s easy to miss payments or waste money. Create a simple budget to keep track of your expenses.
• Earning too little: Cutting back on expenses helps, but increasing your income through side gigs or career advancement can speed up your progress.
• No financial goals: It’s hard to stay on track without clear goals. Take time to define what financial freedom means for you and create a plan to get there.
• Thinking wealth is only for the rich: Anyone can build financial security with the right plan and patience.
• Not seeking the right advice: Managing your finances alone can be tricky. That’s where a financial adviser can make all the difference.

“A good adviser doesn’t just help you save and invest; they guide you through the tough decisions and help you stay on track. They’re like a coach who can steer you away from costly mistakes and keep you focused on your goals,” Devar says .

In the end, achieving financial freedom and wellness isn’t about luck. “It’s about making informed choices and sticking with them. Consistency is key. Starting earlier means that you have more time to build capital. The sooner you take charge of your money, the sooner you’ll experience true wealth and peace of mind,” Devar says.  

PERSONAL FINANCE