By Bertie Nel,
For many, October signals festive shopping and planning their end-of-year break, but it also marks World Financial Planning Day, which serves as a reminder that financial wellbeing is about more than just the next getaway. For the average salary earner, saving for a holiday that they’ll enjoy in just a few months’ time may feel much more tangible than saving for retirement decades from now. Waiting until January to “get organised” may feel convenient but the most effective time to put your financial affairs in order is now.
By aligning your short-term goals with long-term planning, you can enjoy today’s celebrations without compromising tomorrow’s security.
Many people procrastinate on important financial decisions, such as retirement planning, insurance reviews, or updating wills. Often, those decisions feel like an extra task that’s important rather than urgent. When we’re stretched, anything that isn’t urgent gets left by the wayside. But that delay can be costly, especially as we don’t always know when we’ll need a financial safety net.
Procrastination often isn’t a sign of apathy. Rather, when it comes to financial planning, the stakes can feel high and decisions can be overwhelming. People might be unsure where to start or feel overwhelmed by the sheer array of financial products available. And taking a hard look at your finances can be uncomfortable and unsettling.
Deciding to wait for the “right time” to invest, maybe when you earn more, have more job security, or have paid off your debt, is a form of financial procrastination. The truth is, that ideal moment often never arrives, or only arrives many years later.
Putting off those decisions might mean missing out on growth opportunities or taking on more risk than you’re comfortable with.
4 ways to take charge of your financial future
Retirement planning and investing become easier when you have the gift of time. Starting early, even with modest contributions, gives your investments more time to benefit from potential growth and compounding returns. Of course, investment returns, choices and fees all matter. And even if you wish you’d started earlier, it’s never too late to start working towards your financial goals.
If you haven’t done so recently, schedule an insurance review. Your cover should reflect your current situation and protects your assets and the life you’ve built. Having appropriate cover in place can help minimise financial disruption when the unexpected happens.
Don’t overlook estate planning. Having an up-to-date will provides clarity on your wishes and can help ensure your loved ones are provided for. Estate planning isn’t just for the wealthy. It’s about making important decisions now that can make things easier for those you leave behind.
A financial adviser can help you turn good intentions into action. An adviser can help you identify your financial priorities, understand your options and develop a realistic financial plan based on your current circumstances and future goals.
You don’t need to be wealthy or have your finances in perfect order before seeking advice. A good adviser will meet you where you are and help you work towards where you want to be.
Financial planning is not a once-off exercise. Our priorities evolve as we change jobs, start families, buy homes and approach retirement. Regular check-ins with your adviser, whether annually or more frequently as your circumstances require, can help you review your progress and adjust your plan as needed.
Ultimately, you don’t have to tackle everything at once or wait until you have more money or time. Start with one thing you’ve been putting off, whether that’s reviewing your insurance, updating your will or setting up a savings plan. Taking that first step today can help you build greater financial resilience and create more choices for your future self.
Bertie Nel, Head of Financial Planning and Advice at Momentum
