THE FI­NAN­CIAL WELL­NESS PYRA­MID

CityPress - - Trending - The #MoneyMakeover com­pe­ti­tion is be­ing run by City Press in part­ner­ship with fi­nan­cial ser­vices com­pany Mo­men­tum. Over a year, six can­di­dates will strive to save money and reach their fi­nan­cial goals. Each has been part­nered with his or her own fi­nan­cial

Afi­nan­cial plan needs to be ap­proached in stages and one has to build a solid fi­nan­cial foun­da­tion be­fore mov­ing on to the next. For ex­am­ple, it wouldn’t make sense to pri­ori­tise an in­vest­ment port­fo­lio when you have debts to pay off, or try to pay off your debts be­fore you have drawn up a bud­get.

The Fi­nan­cial Well­ness Pyra­mid starts with a Wealth Foun­da­tion, where you fo­cus on get­ting your day-to-day fi­nances in or­der. You move through to Wealth Ac­cu­mu­la­tion once that is in place and, fi­nally, to Wealth Dis­tri­bu­tion, which is how to pass on a fi­nan­cial legacy to the next gen­er­a­tion.

By us­ing this pyra­mid, the #MoneyMakeover ad­vis­ers are able to as­sist the can­di­dates through a se­quen­tial ap­proach.

Frank Mag­wegwe, head of Mo­men­tum Per­sonal Ad­viser Ser­vices at Mo­men­tum Retail, says: “What has been im­por­tant for the can­di­dates to un­der­stand is that de­ci­sions at one level have a great im­pact on other lev­els. For ex­am­ple, if a per­son does not have a re­al­is­tic spend­ing plan, it will be dif­fi­cult to use credit wisely and not spend more than what he or she earns, which will have an im­pact on hav­ing money for other ac­cu­mu­la­tion goals.”

Over the past few months, ad­vis­ers have been fo­cus­ing on the foun­da­tion level, as this es­tab­lishes the strength and sta­bil­ity for a healthy fi­nan­cial plan. With­out it, the en­tire fi­nan­cial pyra­mid could col­lapse. Now they have iden­ti­fied where the fi­nan­cial gaps ex­ist in their can­di­dates’ over­all Fi­nan­cial Well­ness Pyra­mid and which gaps need to be pri­ori­tised.

DIPOLELO

IZIMANGALISO

OM­PHILE

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