Old Mutual’s Savings & Investment Monitor also points out that there is no greater time than now for people to make responsible and informed financial decisions to ensure they can withstand the pressure and not compromise their long-term savings goals and financial futures.
”As the custodian of so many people’s financial futures, we are acutely aware of the important role we must play in providing valuable and practical tips and tools to improve the financial wellbeing of our people and our nation,” John Manyike, Head of Old Mutual Financial Education, adds.
Here are Manyike’s key financial education tips for your clients:
| ● | Always seek expert financial advice |
| ● | Remember that during times like these, knowledge plays a crucial role in the financial decisions we make. Equip yourself with financial understanding to ensure you make the right decisions |
| ● | Look at your finances, and particularly your expenses, really carefully and plan properly for the future |
| ● | Consider having a ‘side hustle’ to supplement your income |
| ● | Find ways to downscale your lifestyle to free up additional cash |
| ● | Don’t borrow from your future and don’t be tempted to draw from your retirement savings |
| ● | Use credit responsibly |
| ● | If you have already consolidated your debts to ease the pressure, avoid further credit |
| ● | Avoid taking loans to buy things in bulk |
| ● | Be very responsible and cautious about buying on credit to avoid debt spiraling out of control |
| ● | Be transparent with your family, play open cards about the debts you have to service so you can manage expectations and help them adjust |
| ● | Do not be tempted to disinvest because of panic. Markets are generally volatile during uncertain times but will self-correct over time |
| ● | If you resign from your job during this time, avoid the temptation to cash out your retirement savings |
| ● | Before you approach a credit provider or accept any offer of debt relief or a payment holiday, make sure you understand the terms and conditions of the agreement |
| ● | Build an emergency fund over time. Ideally you need a safety net that’s the equivalent of 6 months of income |
| ● | Include loyalty programmes in your emergency fund building strategy |
Financial education is a stated priority of the regulatory authorities, but not something product providers and financial advisers can neglect. Our very future depends on us utilising our up close and personal relationship with clients in this regard. Regrettably, as someone once said: I can explain it to you, but I cannot understand it for you.
Click here to download this presentation for your discussions with your clients.
