Failing to plan is planning to fail – a financial plan is your greatest asset, even in uncertain times

Bertie Nel

When it comes to money, the old adage of “failing to plan is planning to fail” has never rung truer – also in tough economic times. With rising living costs, high unemployment and increasing debt weighing heavily on South African households, a solid financial plan isn’t a luxury – it’s a lifeline.

According to a 2021 survey by the Organisation for Economic Cooperation and Development (OECD), only 42% of South African adults are financially literate. This gap in knowledge leaves many vulnerable to scams, unsustainable debt, and missed opportunities.

Bertie Nel, Momentum Head of Financial Planning, says a financial plan is much more than drafting and keeping to a budget – it’s a comprehensive, personalised roadmap that aligns your income, expenses, savings, and investments to your short-, medium- and long-term financial goals. Whether want to buy a home, build a safety net, prepare for retirement or achieve financial independence, a plan ensures you're not just reacting to life, but proactively shaping it.

“Financial wellness is wellness,” says Nel. “It’s not only about numbers – it’s about giving people the tools and confidence to navigate life’s uncertainties, adapt to change, and make empowered decisions.”

For Nel, trusted advice lies at the core of every successful financial plan. Financial advisers essentially are ‘heroes waiting in the wings’ – ready to step in and guide people through adversity and opportunity alike. And yet, too many South Africans are hesitant to reach out, believing financial advice is unaffordable, inaccessible, and only meant for serious investors who have money.

“The truth is, financial advisers are more accessible than many people realise,” Nel adds. “"Working with an adviser doesn’t come at an extra cost - their advice adds value, while they are aligned with financial solutions built with the client's benefit in mind.”

A professional financial adviser does more than manage your money – they understand your goals, assess your current circumstances, and work with you to build a resilient plan tailored to your life stage and financial goals. As your life evolves, so should your plan – and your financial adviser can be there, every step of the way.

Nel says a typical financial plan should include the following key components:

1. Setting clear goals – knowing what you’re working towards brings clarity and motivation.
2. Tracking your money – understanding income and spending is the first step to financial control.
3. Creating an emergency fund – a crucial buffer against life’s unexpected costs.
4. Tackling debt – especially high-interest debt that drains long-term financial growth.
5. Planning for retirement – because earning an income doesn't stop when work does.
6. Considering tax implications – ensuring your wealth grows efficiently.
7. Investing wisely – even small investments can grow significantly over time.
8. Covering insurance needs – protection from medical, personal, or property-related surprises.
9. Estate planning – making sure your loved ones are looked after, your way.

“Our industry has a crucial role to play in addressing this,” says Nel. “We’re not limited to long-form content anymore – today’s technology allows us to deliver microlearning experiences that are fun, fast and far-reaching. Imagine learning money skills the same way you’d learn a language on Duolingo – short, engaging, and accessible.”

Empowering people with financial knowledge – no matter how small the dose – is crucial. Nel believes informed clients make better decisions, and better decisions build a stronger society.

The latest Momentum/Unisa Consumer Financial Vulnerability Index paints a sobering picture: consumer finances remain fragile, with little economic relief in sight. Now, more than ever, South Africans need expert guidance to regain control and plan ahead.

“It’s time to stop treating financial advice as a last resort and start embracing it as the first step towards financial well-being. With the right plan and the right adviser, any South African can confidently face the future on their journey to success. Indeed, failing to plan how to earn, spend, save, and invest your money is planning to fail,” concludes Nel.