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.


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