FINANCIAL PLANNING
the power to take proactive, positive steps right now to create a more stable financial future. The secret is to use simple, consistent actions that connect the gap between economic storms and your personal well-being.
TAKING ACTION TODAY IS THE BEST INVESTMENT YOU CAN MAKE IN YOUR OWN STABILITY...
TAME YOUR DEBT AND FREE UP CASH FLOW
Debt often becomes a heavy burden when money is tight. Instead of letting high interest quietly drain your funds, you can adopt a strategic and assertive approach to reduce it. Think of this as clearing the way for future savings.
High-interest, short-term debts like credit cards and store accounts are your most costly liabilities. Prioritise allocating every extra rand you can towards the debt with the highest interest rate. This strategy saves you the most money over time, allowing you to free up your cash flow sooner.
Talk to your financial adviser about ways to consolidate multiple high-interest debts into a single loan with a lower interest rate. This not only simplifies your monthly payments but also significantly reduces the overall interest you pay, making it easier to service the principal debt.
If you begin to have difficulty meeting your commitments, contact your creditors immediately. Banks and credit providers are often willing to work with you on relief options or restructured plans, but they can only assist if you contact them before missing a payment.
THE MAGIC OF STARTING SMALL WHEN IT COMES TO INVESTING AND SAVING
You don’ t need to be wealthy to start investing; you just need to develop the habit of consistently setting aside a little each month to secure your future. When it comes to investing and savings, a small amount can make a big difference, especially if you begin sooner rather than later.
Invest small, manageable amounts regularly to grow future wealth. The aim is not the size of the initial investment, but the consistency of the effort.
A good idea is to set up a small, automatic debit order- as little as R150 or R200 – to direct money into a low-cost investment, such as a unit trust or exchange-traded fund( ETF). By automating this transfer immediately after payday, you ensure you pay your future self before other expenses take over.
Over time, those small, regular contributions begin to generate returns on themselves- a powerful process known as compounding, or earning interest on your interest. Even R50 a week, consistently invested over twenty years, can produce surprisingly significant gains.
For new savers and investors, focus on broad, diversified funds that mirror the overall market. They are low-cost, less volatile than individual shares, and need minimal effort to manage.
The current economic climate is challenging, but it doesn’ t have to determine your financial future. You can take control by strategically managing your debt and steadily building wealth through saving and small, regular investments.
Don’ t feel you need to navigate this journey alone. Consider engaging a financial adviser to develop a personalised, actionable plan that aligns your saving and investing strategy with your goals and helps you manage debt effectively. Taking action today is the best investment you can make in your own stability and future growth. IB
December 2025 / INBOUND SA 17