By Maria Smit*
Far too often we overcomplicate our thinking about how to accumulate enough wealth to fund our retirement. Sometimes just the thought of saving your whole lifetime for a future that seems very far away can be overwhelming.
But managing your money well often means knowing what not to do just as much as knowing what to do.
What you should do is put away as much as you can afford while you’re earning an income so that you can continue to live comfortably when you’re retired. There are obviously more complex questions you need to ask to get to a personalised strategy, but it’s only by investing during your working years that you’ll have enough when you’ve stopped working.
Quite often, a failure to save enough for retirement is because bad financial habits misdirected money you could have saved into paying off debt. That’s an easy trap to fall into, which is why I’ve compiled a list of 7 bad financial habits that I see people making that keeps them from true financial freedom.
1. Living beyond your means
Constantly spending more than you earn means you’re getting further into debt and possibly financial trouble. It’s tempting to want to keep up with the Joneses next door, but it’s not worth the financial stress that comes with it. To avoid this, start by creating a budget to track your income and expenses. This will help you identify areas where you may be overspending and where you can cut back.
2. Not saving money
Failing to save money for emergencies, retirement or other long-term goals can make it difficult to build wealth and achieve financial stability. Prioritise saving by making it a habit to regularly save a portion of your income. Start small and gradually increase your savings as you become more comfortable. Putting it in an investment instead of just your bank savings account also makes it more difficult to use it when you feel like impulse buying.
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3. Impulse buying
Buying big ticket items on a whim might feel exciting, but it’s also putting your financial security at stake. Unplanned purchases can easily lead to overspending and accumulating unnecessary debt. Rather, take time to think about whether you really need it or whether it’s just an impulse buy. One great way to beat your impulses is to turn off notifications from online shopping platforms that constantly bombard us with deals too good to ignore.
4. Not budgeting
Without creating and following a budget, it’s very difficult to manage your finances effectively and spend within your limits. There are many online and mobile apps that help you to get a better grip on your finances. Some use your actual spending to track what you’re spending your money on and can alert you if you’re overspending, This will help you identify areas where your spending may have been a little impulsive and where you can cut back.
5. Ignoring debt
Debt can be a huge burden if you’ve fallen behind on payments, and can seem like a never-ending spiral that you will never control. But you can, and you should. Short-term debt usually carries higher interest rates, which is money that you should rather be using to save for your retirement. So, put together a plan to pay off your short-term debts as quickly as you can. Focus on paying off high-interest debt first and make sure to pay your bills on time to avoid late fees and additional charges.
6. Over-reliance on credit cards
Relying heavily on credit cards to make ends meet is a major cause for high-interest debt burdens. Make it a priority to pay off your credit card balance in full each month to avoid paying interest charges. If you can’t afford to pay off your balance in full, cut back on using your credit card or find ways to increase your income to settle your debts faster.
7. Not investing
As already illustrated, paying off debt rather than investing for your retirement is a major cause of financial stress that prevents many from investing properly for their future. By investing your money in the market, you can take advantage of the power of compounding to grow your wealth over time. Yes, the market does come with risks as prices rise and fall, but you can ride out that volatility of you diversify your portfolio and invest for the long term.
I’m sure you’ll agree that what I’ve shared here is not shrouded in mystery. By being financially aware, you can keep your short-term finances in check so that your long-term future is secured. Remember, it’s never too late to start making positive changes to your financial habits. Start small and make it a habit to make good financial decisions every day.
- Maria Smit CFP® professional is an advisor at Brenthurst Pretoria
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
