Question:
How do you learn to manage your own money and attain financial wellbeing?

I earn about R16 000 per month, but am unable to manage my money. What are vital investments I should be with considering? I am a single mother of a seven-year-old.

Answer:
The journey to financial well-being starts with you making your finances a priority and taking control. Here are some tips to get you started on your journey:

Plan your finances carefully

In much the same way you need to plan your day carefully in order to fit everything in before the day is out, so too should you be watching where and how you are spending your money on a daily basis to prevent your money from not reaching the end of the month. Yes you guessed it — budget. Not once but continually; with prices going up and interest rates declining, it becomes difficult to keep track of where your money is going. This coupled with the unavoidable emergency visit to the family doctor means that constant evaluation is vital. Attaining wealth is less about how much you earn and more about how well you manage the money you have.

Pay yourself first

We all know that taking some much needed rest and recuperation only happens if you decide to put yourself first and 'plan it in'. Of course, the ultimate beneficiaries of this activity are ultimately your family as a revitalised woman emerges with even more to give. With so much of your time, energy and money committed to providing for everyone else, the only way you will get to build your wealth is to set aside money for yourself by investing before everyone takes a bite of the pie. The ultimate beneficiary is your child. Being financially secure in your golden years is one of the most valuable gifts (and lessons) you can give your child.

Invest in your life

Being a single mother places a significant responsibility on protecting the most valuable 'asset' you have — your ability to earn an income. Death, disability and critical illness are events that few like to think about and therefore little is done about it. However, disasters such as these do happen and need to be planned for. This is where insurance steps to the fore and provides an income when you no longer can. Besides the softening of the burden in such an event, the peace of mind attained in the knowledge of this monetary protection will go a long way in attaining the financial well-being you seek.

Discipline, discipline, discipline

Whether you’re looking at moulding strong-willed toddlers, keeping trim, healthy and fit or managing your finances, the same invaluable attribute is required: discipline. Once you have done the slog work of developing a budget and ensuring adequate investment in your financial future is being made, sticking to your strategy becomes the all important factor and something that requires an unwavering self discipline. Not only is this important to keep you true to your monetary promises, but also to ensure your plan remains relevant and meaningful.

In conclusion, you would be wise to seek out professional financial advice from a suitably qualified financial planner. She or he will assist you in implementing a meaningful financial plan and investment strategy that is aligned to your overall financial goals and objectives. Best of luck.

acsis Limited is an authorised financial services provider. The response to the question covers some of the issues in a general and factual manner and does not constitute advice. It is important to consult with a financial planner who, after an analysis of the individuals’ personal needs, goals and circumstances, will be able to provide comprehensive and appropriate advice.

If you would like acsis to put you in touch with an independent financial planner, click here!

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