How to grow your financial decisions

We might be approaching the end of savings months, but it is never too late to start.
Certified financial planner and acting CEO of the South African Savings Institute (Sasi), Gerald Mwandiambira, called on individuals to take an active approach in saving during the Johannesburg Stock Exchange’s recent Power Hour session on July 22.

Savings month is a national awareness campaign drive by the Sasi to promote debate around the key aspects of saving, raise awareness on the benefits of short, medium and long-term planning and build relations with key partners to leverage future opportunities.

Mwandiambira sat down with Simon Brown, founder of Just One Lap, an independent source of free, unbiased trading and investment education.
With a strong passion for financial education Mwandiambira aims to empower people to be better versions of themselves and not fear money.

The first important on that journey is to however acknowledge the fact that money is only a tool that will work when once you are fully able to understand how to use it.
“A lot of us have this innate fear of managing money and we let money control our emotions, especially in this current climate,” he said.

Brown and Mwandiambira both acknowledged that one of the most common mistakes that people tend to make is thinking that the answer to their money problems and saving is more money.
“If you get an extra R5 000 a month from your boss without knowing how to manage your money, you are going to be just as bad with that extra R5 000,”
said Brown.

Mwandiambira added that this is why savings is calculated in percentages, it does not apply to the quantum. “We all seem to think that if we have more we will do better but actually, if you have more, you will do worse. In fact, if you have more money you are at a greater risk of endangering yourself.”

He added that there is nothing wrong with asking for help and consulting with a financial planner.
Many people believe that because they earned their money, they will instantly know how to manage it and don’t need advice.

“The funny thing is that when you are sick, you are quick to run to a doctor and if you have bookkeeping issues you run to your accountant but when it comes to money, we shy away from getting any help.”

Mwandiambira concluded, “That is probably the worse piece of understanding that we have.
“All of the wealthy people in the world have teams around them who manage their money, which just shows you the complexity of money.”

Details: Interested in taking an active approach to saving? Visit www.savingsinstitute.co.za for more.