Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary.

We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

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Marry your personal finances

According to Ernest Zamisa, financial planner at Momentum Financial Planning, you can improve your personal finances by making them very personal.

He explains that your relationship status with your personal finances should be so personal that you’re inherently married to them – it shouldn’t be a casual relationship.

“Your behaviour towards your finances determines everything, regardless of the amount. Other tools such as setting goals, sticking to a budget, living within your means, are all subject to how disciplined you are in terms of your finances,” says Zamisa.

He believes that “cash is king”, which means that it’s important to maintain a healthy cash flow by cutting out any unnecessary spending.

He adds that you should always have the following three in your product range:

• an emergency cash fund
• a retirement plan
• life cover

“Not all journeys lead to success; success is a science that must be applied,” says Zamisa.

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When to assess financial products

According to Marietta du Preez, general manager at Ecsponent Financial Services, you assess your personal finances every day when you consider making a purchase.

“When you budget for the month, you are assessing your finances,” says Du Preez.

Regardless of whether you make this assessment weekly or monthly, you will inevitably assess whether your purchases were necessary, out of the ordinary, once-off or recurring.

She recommends considering affordability, suitability and whether the product is in line with your goals and objectives. 

What to consider when purchasing a new product

Du Preez stresses the importance of researching recent changes in legislation before taking out a new personal finance product.

In addition, she believes it’s important to know your specific shortfalls and needs, what you need to do to achieve your goals, and – most of all – that you understand all of your portfolios in the most basic or simplified way possible. 

“It’s very important that you’re able to explain your financial situation in laymen’s terms,” says Du Preez.

Zamisa adds that before taking out a personal financial product you should be certain of precisely what it does and how it works.

“The details of what the product can and cannot do are critical right at inception. Ultimately, these have to match your needs and desired outcomes and goals. Beware of any shortfalls or exclusion related to the product,” says Zamisa.

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