We are often told that dreams only come true in fairy tales. But this is not true. With the right knowledge, advice and discipline, dreams do come true. Even more important, are those dreams that talk to our legacy and preservation of future generations. We all have them: We have dreams of putting our kids through school and university when the time comes; owning a car maybe or buying a better house for our families. Dreams of having a restful and enjoyable retirement. Dreams of paid up homes. The question is - are we able to look after our loved ones the way they look after us? And can we retire comfortably, happy in the knowledge we made the right decisions with our money?
"Recent statistics show on average our savings rate in South Africa is pretty close to zero, we're not putting away enough money for life's unexpected events or planning fully for our futures," says Lindi Monyae, Liberty Executive for Emerging Consumer Market.
"South African's come from diverse cultural backgrounds with rich heritages, but for most of us, we have no financial heritage. Only a limited few have this privilege. We have not been taught how to create this reality or build it for future generations. We need advice and guidance to achieve this," she says.
While it's never easy making the right long- or short-term financial decisions, the possibilities of success improve with the right advice, she believes.
For many of us money is here one moment, the next it seems to have been spent on life's necessities. For example, we never saw the Covid-19 pandemic affecting so many South African's financially.
"We all know it's easy to show our friends that we've made it in life by entertaining them every weekend. Or maybe you spend your time helping others around you and find you have little time for yourself? Perhaps you have more than one business going on to try make ends meet and that's adding extra stress to the financial decisions you need to make," Monyae says
We all have financial habits that we have grown to adopt because of our parents, family and friends. We have many influences, but how do we know which ones are the right habits? Some of these habits you might call traditional wisdom, with others maybe you were just relying on what you had heard from people around you.
The financial conversations we have had and will continue to have shape the way we see money; the way we treat money and the way we choose to invest and save our money. Our kids and families depend on us to break the history of financial distress, to start new financial traditions, to take ourselves to the next generation financially secure, free from the burden of debt.
You need someone in it with you when life changes.
So, some good questions to ask are: How am I doing financially? What do I need to change in my current habits to build a positive financial future? Am I saving enough for the now and future needs?
Monyae believes taking the hardship out of money starts with getting financial advice from an expert.
For her, putting a financial plan together involves making maximum use of the variety of insurance and life cover options available. Put together, these can help you in numerous situations:
- Maintain your financial dignity when faced with financial loss
- Help take away the financial hardship of bereavement
- Show you how to gain the freedom of not having to borrow
- Make you more prepared for life’s upsets, returning you to your standard of living afterwards
- Help towards being self-sufficient in retirement
- Protect your financial investments and make sure your family is cared for when you pass away
"It should be said that each situation is unique, and therefore financial advisers are here to offer expert opinions so you can make the most of your money and be prepared when life changes. I do encourage seeking personal advice from a financial adviser. They play an important role in protecting you and your family's financial interests. When things don't go according to plan, don't give up, start again until you get it right," Monyae says.
PERSONAL FINANCE