Science of Success: How to make the right financial choices

Financial freedom and having tools to improve your financial wellbeing have never been so important.

Momentum hosted an event on 24 November in Bryanston, Johannesburg, as special guests made their way to “The Campus” to be given more information on the “science of success.”

The insurance company only allowed guests who were fully vaccinated or had tested negative for the virus after being tested by medically trained professionals at the reception.

The most interesting and entertaining element of the day was the fact that the event was a silent event. Guests were given special headphones upon arrival, which allowed for them to tune in and listen in on the different talks and panels which were happening simultaneously, without actually physically walking to the different panel discussions.

ALSO READ: Sonia Mbele’s new business venture promises to quench your thirst

The Science of Success unpacked the annual Momentum UNISA household index report in bite-size and digestible ways to highlight how certain behaviours can accelerate or decelerate one’s journey to success. Guests interacted with experts to sharpen their financial skills and behaviours through education stations across the event.

“In a time marked by significant disruption, the data shows the importance of financial education in the household, more so that consumers are dealing with depleting mental bandwidth which results in tunnelling on many problems households face.

“This means consumers tend to focus only on the challenges that consume them without keeping the broader context of life in mind; this makes it difficult for households to discern between seemingly right and the right choices that may have a long-term impact on their financial success,” says Momentum’s Insights Consultant, Monique Schehle.

Some of tips of the Science of Success:

• Most households do not benefit from economic growth to the same degree. The benefits of economic growth and employment creation mostly benefit a small minority, namely the skilled and the formal sector employed, which contributes to their financial wellness.
• A household’s ability to generate wealth plays a pivotal role in improving their financial wellness. Most households are unable and incapable of using their resources optimally to generate wealth from their existing income.
• Some low-income households have been found to generate more net wealth, while many high-income households possess a negative net wealth position. Investigations revealed that, despite their financial position, many low-income households have positive attitudes towards their finances and tend to feel personally empowered.
• Households’ low levels of personal empowerment (social capital) prevent them from benefitting financially from the favourable economic environment and moments of economic growth that the country experiences.
• A good education, human capital, and strong sense of personal empowerment, social capital, empower a household to handle their finances with more confidence. When these capitals are combined with regularly performing personal financial activities such as comprehensive financial planning, drawing up a written budget and implementing them, households are more resilient to external political and economic changes, and subsequently improves their financial wellness.
• Many South Africans are financially unwell because of poor decisions and/or financial illiteracy. Households that make use of financial expertise, conduct detailed and continuous financial planning, manage their debt well, and stay informed on financial matters are in a better position to turn the tide of their financial outcomes to their favour.

To kick back and unwind, guests were entertained by amazing and talented South African artists such as Zoe Modiga, Seba Kaapstad and DJ Zinhle, while getting the chance to play some interactive educational games and try their luck to win fun and exciting prizes.

Watch: The Science of Success