October is Financial Planning Month, a good time for South Africans to pause, reflect, and focus on the need for financial preparedness, says Aubrey Faba, Provincial Head at Momentum Financial Planning.
Life has a way of changing faster than most of us expect. One month, your finances feel under control. The next, a promotion lands, a new baby arrives, or you’ve moved into a new home, and your financial landscape looks suddenly very different. With a cost-of-living crisis to contend with, Faba says now is not just an ideal time, but a critical one to conduct an annual financial review.
Financial planning is the process of assessing your current financial situation, defining future financial goals, and then creating and implementing a strategy including budgeting, saving, investing, and managing risk to achieve those goals.
“Your financial plan is a living document,” says Faba. “It needs to reflect your current reality. If you set it up once and never check it, you could miss opportunities or be exposed to unnecessary risks.”
Financial success favours the prepared and the strategic. Here are five essential reasons why an annual financial review should be on your calendar:
- Life changes have real consequences
Marriage, children, critical illness, or starting a business all reshape your finances. “Even small life changes can have big financial impacts. Your financial adviser can help you understand what’s changed and adjust your plan so it stays aligned with your goals,” says Faba.
- Stay on track with your goals
Unexpected costs like a car repair, a family crisis, or overspending on everyday items can knock your plan off course. “An annual review gives you a chance to measure your progress and refocus,” says Faba. “It turns long-term aspirations into achievable results.”
- Prepare for the unexpected
Life can throw curveballs at any time. “A financial review checks your emergency savings, income protection, and critical illness cover,” says Faba. “It’s about being resilient, not reactive, so you can handle setbacks without derailing your finances.”
- Spot opportunities to grow wealth
As your career and income evolve, new opportunities will arise. Consider, for example, tax-efficient savings, property investments, or other unique opportunities to diversify your portfolio.“As the world of finance gets ever more complicated, nobody expects you to know everything. However, your adviser can help you identify and act on new opportunities and make sure you’re always moving in the right direction,” Faba notes.
- Reduce debt
“Debt is a major cause of stress and anxiety. When you are able to reduce – or even eliminate debt – you have greater financial flexibility and are better positioned to build a secure future. A financial adviser is ideally positionedto help you to find ways to reduce and eventually eliminate debt,” says Faba.
In an uncertain and unpredictable era, a financial review isn’t just about numbers but rather a roadmap to help you navigate life’s uncertainties. “Regularly checking in with a trusted adviser allows you to steer your financial future rather than allowing circumstances to steer you,” says Faba.
Sharingdetails about your income, expenses, assets, debts, investments, retirement savings, emergency funds, and insurance with a financial adviser will allow them to design an appropriate and fit-for-purpose plan that suits your life.
“Success favours the focused and the prepared,” says Faba. “Your financial plan should grow with you. Ensuring that your annual review becomes a regular habit is one of the simplest, yet most powerful steps you can take towards achieving a secure, confident, and prosperous future.”
Contact your financial adviser today to schedule an annual review. Your future self will thank you.
