How to build a resilient financial plan

As we approach the end of the year, it's the perfect time to take stock of your finances. Planning ahead is key, whether you're focused on growing your savings or protecting what you've built. But here's the thing: It's not just about having a plan - it's about ensuring your plan can adapt to life's surprises. That's where adopting a growth mindset comes in.

In this guide, we'll explore how embracing a growth mindset can help you build a financial plan that grows with you and stands the test of time - whether you're considering starting a family, planning for your children's education, or preparing for retirement.

What's a growth mindset, and how can it help your finances? 

A growth mindset is about believing you can improve through learning and effort. It encourages you to view financial challenges as growth opportunities, not setbacks. 

For example, starting with R500 a month in savings and increasing that amount as your income grows allows your money to compound over time, turning small steps into big rewards. Example: Investing R500 pm, increasing at 10% pa and growing at 9% pa, will give you around R45 000 in 5 years.

Here's how a growth mindset helps with financial planning: 

• Learn from setbacks: Mistakes become opportunities to improve. Overspent during the school holidays? Instead of feeling discouraged, reflect on how to adjust next time.
• Keep evolving: Your financial plan grows with you. As your goals change, so should your plan. 
• Improve habits: You'll keep finding ways to save more, invest smarter, or reduce debt.

Building financial resilience: Why your plan needs to adapt

Life is full of surprises - whether it's a change in income, unexpected medical bills, or a family emergency. A flexible financial plan ensures these twists and turns don't knock you off track. In South Africa, we know how quickly things can change, but with the right approach, you can stay ahead.

Here's how to build financial resilience:

1. Review your financial plan regularly - Make it a habit to check it at least once a year. Life changes like new jobs or welcoming a baby should be reflected in your plan. 
2. Diversify your investments - Don't put all your eggs in one basket. Spread your money across shares, property, and savings accounts to manage risk. 
3. Build an emergency fund - Save 3-6 months of living expenses for those inevitable unexpected costs. It's your financial safety net.

Remember, everything we're talking about here is exactly what our expert team at Momentum Velocity Club (MVC) can help you with. Think of us as your accountability partner - here to guide and support you every step of the way on your financial journey. Book a consultation today.

How to build a financial plan for long-term growth

Now that we've covered the topic of resilience, let's talk about growing your money. A solid financial plan isn't just about protection - it's about making sure your money works for you.

1. Invest for the long-term 

Whether stocks, property, or bonds, long-term investing is a powerful way to build wealth. The sooner you start, the more time your money has to grow. Remember, staying the course - even when markets get rocky - is key 

2. Rebalance your portfolio

As markets and your personal life change, your investments should, too. Regularly review and rebalance your portfolio to ensure it aligns with your current goals and risk tolerance. 

3. Check your insurance 

Insurance acts as your safety net. Ensure your life, disability, and health insurance policies are up to date, especially with rising medical costs in South Africa.

4. Plan for your legacy

Estate planning is more than having a Will. Updating your estate plan ensures your family is well taken care of and your wealth is passed down as you wish.

Small steps, big growth: Planning ahead with a growth mindset

A growth mindset isn't just for big changes - it's about small, consistent actions that build up over time. Here are a few practical steps you can take right now:

• Automate your savings: Set up automatic transfers into your savings or investment account. It adds up over time, even if it's just R200 a month.
• Revisit your budget: Every quarter, review your budget. Look for areas to cut back and increase your savings or investments.
• Rebalance your portfolio: Every 6-12 months, make sure your investment portfolio is still aligned with your goals. Adjust if needed based on changes in your income or expenses.

Conclusion: Grow and protect your financial future

Planning ahead is about more than just being prepared for tomorrow - it's about growing with every challenge and opportunity that comes your way. By adopting a growth mindset, you're not just building a financial plan that keeps you secure but one that helps you thrive. Whether you want to grow your wealth or protect your family's future, MVC can help you create a financial plan that works for you.