8 Essential financial planning steps

IT’S alarming to consider the implications of South Africa's insurance gap, and even more concerning that so many consumers have little to no insurance protection in place. This leaves them dependent on the government, family, or credit (which often leads to debt) when the unforeseen occurs, creating far-reaching consequences for generational wealth.

- REEONA CHETTY

While economic pressures are felt worldwide, the lack of financial protection in South Africa is largely tied to limited awareness of the importance of financial planning and of how the absence of proper planning hinders the ability to protect and grow wealth. It’s often said that most people are only three salaries away from financial distress. Given South Africa’s weak savings culture, many live paycheque-to-paycheque with very little disposable income, making affordability a significant barrier to financial planning.

Further, financial decisions are tough, and consumers are met with so much information about what they should be doing. Often this leads to procrastination. My advice is:

Don't follow uninformed advice. Speak to a trained financial advisor to understand where you are financially, and to create a realistic roadmap to close any gaps affordably. With the guidance of a financial advisor, you can gain valuable education and insight into better money management, including a personalised analysis of what cover you need and why.