How to avoid financial self-sabotage

Take a step back and reflect on all the plans and goals you listed at the beginning of the year. How many of them have you actually stuck to? For most of us, many of our plans end up at the bottom of our to-do lists, which are under our bed along with that 500-piece puzzle we hope to finish ‘one day’. This may also be true when it comes to our finances and the manner in which we self-sabotage our plans.

Financial self-sabotage can come in many forms, especially for those of us who aspire to live like our favourite celebrity or want to keep up with societal trends and consumer pressures – like not paying accounts on time or buying an unbudgeted air fryer because it’s the latest ‘must have’.

Here are some tips to help avoid financial sabotage.

1. Always work with a plan in mind

If we fail to plan, we plan to fail, as the saying goes. This couldn’t be truer when it comes to your finances. Think short, medium and long term when it comes to your plans and goals. Remember, nothing worthwhile happens without a solid plan to support it.

2. Create a budget and try to stick to it

Failing to budget will leave you in the dark when it comes to knowing how much you have and how much you need to be able to cover your monthly expenses. No one can make a success of their finances without having a grip on what comes in and what goes out.

3. At any given opportunity avoid bad debt

Do not be tempted by purchases that you can’t afford. Purchasing something you cannot afford or must repay in instalments over many months or years, will cost you much more over the longer term and will put pressure on your monthly budget. Whenever possible, in order to avoid incurring debt, rather save for something you need or want.

4. Play hard and work harder

We all love to reward ourselves for working hard. Just remember, careful planning to achieve the desired outcome at a time when we can afford it, is worth far more than instant gratification at a point when we’re financially under strain.

5. Make saving an imperative, not an afterthought

Doing this will put saving on par with every other element of your financial plan and budget.

Life is fast-paced, and the allure of instant gratification can be hard to resist. Consider the benefits of a trusted partner like a financial adviser in your corner, add a solid plan and a commitment to see things through, and you will be well on your way to financial freedom.

Sanlam Limited is the Licensed Controlling Company of the Sanlam Limited Insurance Group.