How to attain financial enlightenment

There is no shortcut to financial success. It is a journey. This implies that substantial time and iteration is needed to get there. But if you stay the course, you’ll reach financial enlightenment. Here are practical steps to get you there.

We can be enlightened in many ways; emotionally, spiritually, and even financially. Often described as
having advanced information or knowledge on a topic, enlightenment dispels confusion and provides certain clarity on a matter. The end result is the confident ability to make good financial decisions. When managed properly, money can be a useful tool. The following steps are commonly recommended by financial advisers.

Avoid Financial Confusion

Most people feel confused, uncertain, afraid, or even unaware of their financial state. This results in their low financial confidence, where they simply don’t feel in control of the situation, or confident enough to handle it. Thankfully, this can be remedied.

TIP: Prepare yourself for the transition

To reach financial enlightenment, allow yourself to go through the process. Alexandre Riley, Chartered Financial Planner, refers to this transition as The 7 Stages of Financial Enlightenment.

Educate yourself

Information and knowledge are key to enlightenment. By improving your financial literacy you can avoid costly pitfalls. You can start by reading our monthly communications, watching our short videos, and reading our financial tips and articles.

TIP: Seek professional advice

Don’t make expensive mistakes. Your interface financial coach can provide you with an array of financial information from budgeting, banking, savings and insurance, to buying a home or saving for your child’s education.

Learn the difference between needs and wants

It’s all about balance. Think about it: beyond basic needs like food, clothing and shelter, how much do you really need? Don’t allow unnecessary things to throw you (and your bank statement) off balance.

TIP: Keep money in its place

Having a budget can give you a sense of where your money goes. It is the only practical way to monitor, control, and reduce your spending.

Build your financial confidence by doing and practicing

As Dale Carnegie advised: “Inaction breeds doubt and fear. Action breeds confidence and courage.” Know what is important to you. That way, you take setbacks in your stride and can better manage your expectations.

TIP: Spend less than you earn

Understand the value of money. Make it a habit to set money aside. As soon as you get paid, deposit an amount into a bank for safekeeping. That will help you to fight any temptation to spend those funds.

Invest in yourself

You can do this by acquiring skills to take care of your financial health. Make financial learning a lifelong habit. Apply practical wisdom and thinking ability – and keep on developing them. This investment will pay you back.

TIP: Be diligent and plan

Carefully consider your future needs. When managed properly, money can provide you with the freedom to pursue the more important things in life. Consider your needs for the future, like planning for your retirement.

October Challenge

We live in a world of instant gratification where waiting five minutes for anything seems five minutes too long. The problem with instant gratification, however, is that it often comes at a cost. For October, we challenge you to resist instant gratification and steer toward financial enlightenment. Remember, good things are worth waiting for.

Your financial coach is on hand to provide you with all the information to make better, informed financial decision. Simply contact your financial coach for support.

For confidential assistance, contact Life EHS. SMS your name to 31581 and the Care Centre will call you back.

The information is shared on condition that readers will make their own determination, including seeking advice from a professional. E&OE.

References:


5 Rs to revive your finances this spring

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How to hone financial readiness

Reading time: ±1:50 min.

Remember all the times you managed to recover from an unexpected setback? That’s called resilience, the ability to bounce back after an unexpected challenge. ‘Prosilience’, on the other hand, is ensuring readiness – that you’re prepared before anything happens.

Prosilience is a crucial skill in building financial security, as it ensures that you’re prepared to face financial difficulties. Use the below questions as a guideline for things you should keep in mind.

1. Assess how ready you are for financial setbacks

  • Are you prepared for the death of a loved one?
  • Can you survive the loss of a job or an income in your family?
  • Are you able to cover hospital bills in a medical emergency?
  • If you become critically ill or disabled, will you be taken care of?
  • Can you cope financially if you suffer damage to or loss of your home, car or laptop, or major appliances like your fridge?

2. Do a mini insurance audit

  • What cover do you have? This includes your life insurance, medical aid and top-up cover, short-term insurance and income-protection policies.
  • Do these policies cover your specific requirements?
  • Is the amount of cover on each policy sufficient?
  • Do your policies reflect your correct details and status?
  • Have you met all the insurers’ requirements?

3. Be prepared by covering all your bases

  • How else can you prepare for future financial success?
  • Have you drafted an updated will?
  • Have you checked that all beneficiary nomination forms are current?
  • Do you have emergency funds equal to at least six months’ worth of expenses?
  • Are you putting away a portion of your income for your retirement?
  • Are you saving for holidays, further education or to realise a dream?
  • Have you invested in assets that will allow your wealth to grow?

Remember, your financial coach is available to guide and assist you. If you have any queries about the above, contact your Interface financial coach here.

For more financial advice, read these helpful articles:

The information is shared on condition that readers will make their own determination, including seeking advice from a finance professional. E&OE.


When is the best time to buy prepaid electricity?

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Financial accountability is the key to financial success

Read time: ±1:50 min.

Accountability is important for achieving success in every aspect of life, but when it comes to financial success, it is crucial. Here’s a look at why that is and how you can unlock financial success through accountability.

Accountability is recognising and accepting that you are responsible for the choices and actions that contribute towards your success. People who take responsibility speak up, find solutions and answers, and take decisive action.

What is financial accountability?

When it comes to your finances, do you hold yourself accountable? It is easy to blame others for a lack of financial success!

Are you juggling accounts and missing payments? Are you saving for emergencies and for your future? Have you got the right insurance in place? Perhaps you blame your company for not paying you more, or your family commitments for not allowing you to save?

Financial accountability means you accept responsibility for what you choose to do with your money and for the financial actions you have not taken.

Try this accountability challenge:

It is vital to take stock of your financial responsibilities to improve your financial life. Here are four ways to get started:

Review your expenses: draw up a budget so you know exactly where your hard-earned money goes, then eliminate unnecessary expenses.

Take responsibility for your debt: check your credit report and take responsibility for maintaining a good credit history. Make a list of the outstanding amounts and the interest payable and take action to reduce this debt.

Prepare for unforeseen events: take responsibility for possible unexpected events by having an emergency fund and the right insurance, such as short-term, life, medical, disability and income protection.

Take charge of your future: make provision for your retirement and start saving for your future goals, whether it’s buying your own home or car, travelling or starting a business.

Only you can take responsibility for your financial success, but your financial coach is available to guide and assist you with every step! Contact your financial coach for guidance to achieve your financial goals. It is free and available for you to use.

For more financial advice, read these helpful articles:

The information is shared on condition that readers will make their own determination, including seeking advice from a finance professional. E&OE.


7 fuel-savings tips you should know

Reading time: ±2 min.

The nationwide lockdown, implemented due to the COVID-19 pandemic, has decreased the kilometres we travel every month. However, fuel prices are not likely to drop drastically in 2021. In fact, the price of petrol has increased steadily since the budget speech in February. Learn how petrol hikes impact your pocket and use our tips to make your money and kilometres go further.

According to the Automobile Association, the current petrol hikes in South Africa can be attributed to an increased optimism surrounding economic recovery as the global roll-out of COVID-19 vaccines becomes more of a reality. The following also plays a role:

  • The increase in the demand for oil
  • Socio-economic tensions in the Middle East
  • The increase in the fuel levy in South Africa

What is the impact of fuel hikes in SA?

When the price of petrol increases, it affects more than just the amount of fuel you can get per rand. Some ways in which you may be impacted by petrol hikes could include:

Rise in public transport costs
When the price of petrol increases, South Africa’s public transport industry suffers. Not only do the drivers feel the pinch, passengers are also impacted by increased fares for both local and long-distance travel.

Mark-up on grocery prices
The higher the cost of fuel, the pricier it becomes to move produce and other items around the country. As a result, this makes the average monthly groceries for households more expensive.

Small businesses suffer
A bigger budget for petrol and other necessities means a smaller budget for luxuries. This impacts the income of smaller businesses, not only because people are making fewer purchases, but because the cost of supplies increases, too.

How can you save on petrol?

Although fuel hikes and the pinch they bring are inevitable, there are ways to cut down on your petrol usage:

Be prepared
Lastly, always be aware of petrol price hikes so you can budget efficiently. Be sure to make changes to your entire budget and not just your fuel allocation – be mindful of how you spend money and where you can cut back.

For more financial advice, read these helpful articles:

For confidential assistance, contact Life EHS; SMS your name to 31581 and the Care Centre will call you back.

The information is shared on condition that readers will make their own determination, including seeking advice from a professional. E&OE.

References:


What does financial success mean to you?

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3 benefits of practising financial gratitude

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