The economic outlook for 2023 is not very positive and as we continue with the Russia/Ukraine war and the ensuing energy crisis economists are predicting a recession for the USA which inevitably spreads to a global recession.

Here in South Africa productivity is low, and we’re constantly facing service delivery cost increases and political turmoil leading to unrest which again is costly. All these deplete the economy, so we can hardly expect 2023 to be a year of plenty.

As people with a half-glass-full mentality, however, we know that even the toughest times can present opportunities and by doing a few of the right things we can cushion the blows that lead to the erosion of wealth.

These are 5 essential wealth preservation methods that will give you some chance to see difficult times through unscathed and even aim for financial growth in 2023…

1. Prepare for tough times

You need to think of your wealth as a pile of coins surrounded by life’s greedy unexpected events all wanting to take something from it. The only way the pile can grow is if it is big enough to withstand a major assault and is protected all the time.

This means having a solid foundation, so create a savings fund that will see you through at least a few months of bad times. Ensure that the savings are growing too by being invested in good interest-bearing funds.

2. Trim the fat

The other way the pile will be depleted is if you can’t ever add to it. This means that you need to ensure whatever you spend is way less than what you earn. While you are earning, trim the fat off your budget. Do you really need that gym or magazine subscription or an expensive holiday?

Eliminate debt too wherever you can, or at least deplete it before it depletes your pile. When you have some spare cash or that year-end bonus you could do well to reduce your bond or pay off any other form of debt that you can eliminate in the new year like a credit card or hire purchase account.

3. Protect yourself with cover

The other way your pile can be rapidly depleted is by the always unexpected onslaught of an accident, critical illness or losing your job or your business. While you have the money to do it always ensure you have good medical, critical illness and income protection cover. This gives you a much better chance of surviving the worst that 2023 may throw at you.

4. Review your will – for peace of mind

To be a financial success in tough times we need to be at the top of our game. Niggling worries, like not knowing if your loved ones will be cared for if you do suffer something fatal will not help. At the end of the year whilst you have time, or before you travel, ensure your will is updated and you have a well-planned estate so that your loved ones will receive that pile that you have worked so hard for.

5. Review and restore with a Financial Advisor

It may all sound like it’s tough to do and you’ll never be able to enjoy life, but take it from us, when your finances are well structured and protected under the advisement of one of the Hereford Group’s skilled Financial Advisors, that pile starts growing pretty quickly and you can start living a better life too.

All it takes is some review at the end of the year – or the beginning of 2023 – and you can start restoring your finances and still aim for financial growth in 2023!

Talk to us today to set up an appointment. Happy Holidays – and thank you to all who have entrusted the growth of their wealth to us in 2022. May 2023 be your most prosperous year ever!