By Renee Eagar*
Have you ever asked yourself, “Am I doing the right thing with my money?” Maybe you’ve kept cash in the bank because it feels safer and somewhat more accessible. Or you’ve thought about selling your investments because of something you saw in the news.
These are normal reactions. But they’re also the kinds of decisions that can quietly hold you back consciously or maybe even unconsciously and make a big difference over time. Most people don’t lose money because they picked the wrong fund. They lose money because they let fear or emotion drive their decisions. The graph below shows how easy it is to destroy your wealth just based on reacting in periods of volatility.
The good news? These mistakes are easy to avoid — once you know what to look out for.
Investors for years have been making emotional decisions when it comes to their finances—some can’t help it because money is emotional. It is personal – tied to our hopes, fears, family and future plans.
The emotional traps we fall into
The problem is what feels right in the moment can often be the wrong move for the long term. That is why it helps to know the difference between emotional reactions and smart, practical choices.
One of the biggest traps is being sold something that sounds great — without being shown how it fits into a real plan. You might walk away with a product to invest in, but no strategy behind it. Good advice starts with understanding your full situation, objectives and building a holistic plan that works for you.
Another common mistake is holding too much cash. It feels safe, especially during uncertain times. But over time, inflation eats away at its value. Cash is useful for emergencies, but if you want to grow your money, it needs to be working harder. It makes little sense to hold cash for long periods of time especially when your tax rate is high as this makes your monies after tax yields much lower and most definitely won’t outperform inflation over the longer term. This becomes a problem especially when Interest rates are on a downward cutting cycle. There are better options for cash that remain conservative.
Panic selling is another big one. When the market drops, people often feel they should do something — anything — to protect themselves. But acting in fear often locks in losses which are almost impossible to recover. It is difficult to do especially nowadays when it feels like every other day there are frequent big events, they happen instantly and far too quickly but unless your circumstances are a life changing event such as death, divorce or even a risk profile decision as an example. The best thing to do is to stay calm and wait it out.
Common traps you can easily avoid
A lot of people invest in whatever did well last year. But just because something performed well recently doesn’t mean it will necessarily persist, a longer term track record and understanding where you are invested for as an example is way more fundamental to a successful investment result.
Diversify, the lack of variety and different fund manager views can make your portfolio more fragile. Spreading your investments, reduces the risk and helps protect you if something goes wrong.
If your money isn’t growing faster than the cost of living, you’re slowly falling behind. These days, even retirees often need to take on a bit more risk to stay ahead of the curve. And while it is important to understand fees, fees are only one part of the picture.
Do not let a fear of costs stop you from investing. A 1% growth differential over a 30 year period, can mean millions of rands extra towards your savings and or retirement plan.
So, if it relays to better investment growth, lesser tax you pay or even a fee saving within an investment product or the time it takes you to invest, good advice can help you achieve that extra growth.
It’s easy to wait until things “feel right.” But waiting often turns into months or years on the sidelines. And the longer your money sits dormant, the less time it has to grow.
Don’t leave it to chance
Getting started, even in a small way, is often better than doing nothing at all.
If you are not sure what to do next, or if you are worried your money isn’t working hard enough, talking to a financial advisor can help. A good advisor won’t sell you just a product. They’ll help you build a plan that fits your life.
* Renee Eagar, Certified Financial Planner®, is head of Brenthurst Wealth Claremont, Cape Town
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.
