10 ways to im­prove your fi­nan­cial well­ness

Weekend Argus (Saturday Edition) - - FRONT PAGE -

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.

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