10 ways to improve your financial wellness
MANY things are beyond your control, but there are things you can do to improve your lot in life, the Momentum/Unisa South African Household Financial Wellness Index report says. These are:
Constantly improve your work-related and financial skills (human capital).
Use these skills to start living a more empowered life (social capital), which includes building a large support network of family and friends.
Budget and do comprehensive financial planning with specific objectives. Align your budget with the objectives in your plan – and stick to it.
Use professional experts/ financial advisers to assist with budgeting and planning.
Save money to protect yourself against shocks and for retirement – this should be part of your comprehensive financial plan and part of your budget.
Manage your debt – live within your means and don’t incur debt you won’t be able to afford. This should be part of your budgeting and planning.
If you are unemployed, take up any employment you are offered and gradually work towards what you want to do. (Doing this will also improve your social capital.)
Increase your income by doing multiple jobs, but be careful of negative compensation – overspending just because you have more income.
Use your income and asset-accumulating debt (such as your home loan) to grow your assets and net wealth.
Use your income and assets to improve your living conditions. A healthier life will reduce your financial stress, and you will have lower medical expenses.