Five Tips to Help You Avoid Financial Self-Sabotage (2024)

[Co-authored by Nosipho Itumeleng Moyo ,PR, Communications and Marketing Specialist at Botswana Life Insurance Limited in collaboration with Lee Hancox, Head of Channel and Segment Marketing at Sanlam Connect]

As we fully immerse ourselves into the new year, our vision boards and plans will serve as a mirror to the dreams and goals and us something to reflect during the course of the year. It's important to give oneself a moment for a reflective review, a time to assess what we've accomplished and what still lies ahead. Often, amidst this contemplation, we come face to face with the specter of financial self-sabotage – a phenomenon that can cast a shadow over our unfulfilled financial plans. In this current moment of reflection, Lee Hancox, Head of Channel and Segment Marketing at Sanlam Connect, illuminates five indispensable strategies to help you steer clear of financial self-sabotage. These steps offer a roadmap to transform your financial aspirations into present-day realities.

1. Plan with Purpose: Having a well-structured plan is crucial. Hancox emphasises that "failing to plan means planning to fail." This applies especially to finances. To overcome financial self-sabotage, set short, medium, and long-term goals, and create a detailed plan to achieve them. A financial planner can be a valuable partner in this journey.
2. Stick to a Budget: A budget is essential to understanding your financial situation. Hancox warns that "not budgeting will leave you in the dark." Knowing your income and expenses is vital for financial stability. A well-crafted budget acts as a guide, helping you make informed financial decisions.
3. Avoid Unnecessary Debt: Impulse purchases can lead to financial trouble. Hancox advises against buying beyond your means. While it may be tempting to use debt for immediate gratification, it often leads to more significant problems in the long run. Instead, prioritize disciplined saving and careful planning for your purchases.
4. Practice Delayed Gratification: In a world of instant gratification, Hancox highlights the value of patience. While quick rewards might seem satisfying momentarily, long-term financial stability and success come from patient, strategic planning.
5. Make Saving a Priority: Viewing saving as a crucial part of your financial strategy is essential, according to Hancox. Treat savings with the same importance as your other financial commitments. This mindset shift can build financial resilience and protect you from unexpected challenges.

Achieving financial fulfilment requires determination, wisdom, and a proactive approach. By working with a financial planner, gaining a comprehensive understanding of your financial situation, avoiding unnecessary debt, embracing delayed gratification, and prioritising saving, can pave the way to financial freedom.