Werner Pienaar Staying on Track in a Changing World Revisiting Your Financial Goals 22July2024 (1)

Staying on Track in a Changing World Revisiting Your Financial Goals

 

By Werner Pienaar CFP®

 

In these challenging economic times, it's essential for one to reassess and adjust your financial goals. The rising cost of living and high interest rates demand a strategic approach to ensure financial stability and long-term success. Here are some key steps to help you navigate this tough landscape.

 

Conduct a thorough review of your budget

Distinguish between essential and non-essential expenses – necessities compared to nice-to-haves. This might mean cutting back on dining out, entertainment, or luxury items. Prioritizing necessities can help you manage your finances more effectively. Using budgeting apps or tools can provide valuable insights into your spending patterns.

 

Re-evaluating your savings and investment strategies

This is crucial to ensure you do not lose track of your long-term savings goals. Consulting a financial advisor can provide personalized advice tailored to your financial situation.

 

Debt management should be a priority

Focus on paying off high-interest debts to free up cash flow. Debt consolidation could be a viable option, potentially reducing your monthly repayments and interest rates. Avoid accumulating new debt unless absolutely necessary. Don’t use long-term debt (house bond) to finance a short-term asset (vehicle), unless your plan is to settle the debt related to the vehicle over 4 or 5 years.

 

Adapt Your Lifestyle

Be willing to make lifestyle changes to adapt to the new economic reality. This might involve downsizing your living arrangements, adopting a more frugal lifestyle, or delaying major purchases and vacations.

 

Practice Mental Resilience

Economic difficulties can take a toll on your mental health. Maintain a positive outlook by focusing on what you can control and setting realistic goals.

 

Seek Professional Advice

Consider consulting a financial advisor. They can provide tailored advice and strategies to manage your finances, reduce debt, and plan for the future.

Lastly, stay informed about economic trends and policies. Keeping abreast of changes can help you make informed financial decisions. Adaptability and resilience are key to navigating economic challenges. By proactively finetuning your financial goals, you can better manage your finances and secure a more stable future.

 

Read more about Ascor® Financial Planning Services

Ascor® Independent Wealth Managers Financial Planning Services page

 

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