Looking for a fresh financial perspective? We’ve got advice for that
The entire country is on the edge of its economic seat in the run up to one of the most important Budget speeches in recent history. There is no denying the fact that most of us have had to find fresh financial perspectives to successfully navigate a year of resilience and financial strife.
Some of us may have tapped into the power of financial advice, to pivot and find new opportunities to refresh old ideas to become the stepping stone for new innovations. However, the findings from the Momentum Unisa Household Financial Wellness Index at the second Momentum Science of Success festival, highlighted that ordinary South Africans who managed to stay afloat during the pandemic did so as a result of established positive financial behaviours.
Momentum head of marketing, Charlotte Nsubuga-Mukasa believes the budget speech will make clear that economic recovery is going to take focused ambitions coupled with hard work and an extra dose of patience. The same will be true for our personal finances – so understanding and acknowledging that money is emotional, will need to be balanced with advice that can sustain an already emotional journey into the fiscal to come.
“We are all human. We must therefore appreciate that many of our decisions are driven by our emotions. When it comes to our finances, it is our emotional nature that can either accelerate or hold us back from our journey to financial success,” says Nsubuga-Mukasa.
Momentum Investments conducted research and found five behavioural archetypes. These archetypes were identified in the Fear and Greed: Understanding the Forces that Drive Success Investment Behaviour research paper. These archetypes revealed the level of influence that fear and greed has in our cognitive decision-making process –it is something that cannot be denied, even with the most astute of investors.
“In truth, while not everyone is an investor by trade, we all want to take charge of our finances. There is an inner sense of fulfillment when we are able to invest in our own futures and the future prospects of our families,” says Nsubuga-Mukasa. “It is up to us to carve out our own path and search for accessible #AdviceForSuccess that is enabling. Every journey starts with one step. Let’s safeguard our ambitions by being conscientious about our emotional and mental health on our financial success.”
However we cannot put our heads in the sand. The journey to success is one that can be riddled with speed bumps that carry with it emotions like regret, anger, desperation and jealousy. Keeping one's wits may prove to be difficult. And the risk of falling victim to “behaviour tax” becomes even higher.
Whether it’s getting out of debt one small repayment at a time, or learning to right previous financial wrongs, getting the right financial adviser can be an enabling and powerful lifeline. Get more insights about Momentum’s 7 Habits of Money Savvy Households and connect with a Momentum financial adviser, or go to momentum.co.za.
This article first appeared on EWN : Looking for a fresh financial perspective? We’ve got advice for that