Need to know
- Andile Jonas, Head of Marketing at Momentum Savings says DIY financial planning can lead to costly mistakes and emotional decisions.
- A financial adviser provides personalised guidance, tax-efficient strategies and ongoing support.
- Expert advice can help you make smarter decisions and stay on track for long-term financial success.
We all know that for do-it-yourself (DIY) jobs around the home, your tools must be up to the task. We also know that a gap in practical know-how can be incredibly costly.
Managing your money is no different. Even if you have a keen interest in finance, keeping up with the complex worlds of investing and insurance is a massive undertaking.
If you are weighing up whether to manage your own portfolio or partner with an expert, here is a breakdown of the actual costs of DIY investing vs. professional financial advice.
What are the hidden risks of DIY financial planning?
At first glance, managing your own investments and insurance may seem straightforward. After all, there's no shortage of information available online.
The challenge isn't finding information - it's knowing which information applies to your unique situation.
One of the biggest obstacles is recognising your own blind spots which brings up questions most DIY investors aren't always able to objectively answer:
- Risk vs reality: Do you know your true risk tolerance? More importantly, do you realise that not investing is often the biggest risk of all?
- Understanding the terms and conditions of your policy: For insurance and life cover, can you accurately calculate the true value of what you are putting in versus what you'll get out before it’s too late?
- The ‘what first?’ dilemma: Where do you even start? Should you prioritise medical aid, retirement savings, or life insurance for a young family? What about protecting aging parents?
Our lives and circumstances change constantly. Keeping up with those shifts requires a level of oversight that goes far beyond a basic spreadsheet.
What is the emotional cost of DIY investing?
Money decisions can be deeply emotional. Can you truly remain objective when deciding who in your family needs what level of protection or extra help? Are you making fair, rational choices, or are you acting on gut feelings?
This is where DIY investing often hits a silent, expensive wall: human behaviour.
When markets become volatile, many investors panic and sell investments at exactly the wrong time. Others are tempted by ‘too good to be true’ investment opportunities that promise extraordinary returns.
Making financial decisions based on emotion instead of strategy can have long-term consequences.
A good financial adviser helps remove emotion from important decisions by providing objective guidance and keeping your long-term goals in focus.
Is DIY financial planning really cheaper?
Many people assume managing their own finances saves money because they don't pay adviser fees or commission. While that may be true on paper, the real cost often comes from making avoidable mistakes such as:
- Choosing the wrong investment product
- Being underinsured
- Missing valuable tax benefits
- Making emotional investment decisions
- Failing to adjust your financial plan as your circumstances change
Like visiting a doctor or hiring a qualified electrician, financial advice isn't simply a cost, it's paying for specialist knowledge that helps you avoid expensive errors.
One costly mistake can outweigh years of professional advice.
How can a professional financial adviser help you?
Do you have the hours required to compare every product on the market, analyse the track records of various asset managers, and dissect insurer policies? Probably not. An adviser's entire career is dedicated to staying on top of these market shifts to save you time and money.
Here is what a qualified financial adviser brings to your table:
- Custom blueprints: They calculate exactly how much you need to reach your goals and give you peace of mind.
- Tax efficiency: They can advise on tax-efficient products and retirement so you keep more money in your pocket.
- Big-picture planning: They help map out strategies for tackling debt and help with estate planning.
- Progress tracking: They should assess your financial progress and tell you when you should adjust.
- A voice of reason: They keep you grounded when market noise or panic sets in.
Why your financial future deserves more than DIY
Just like those annoying little maintenance jobs around the house we love to put off, we often avoid facing our finances because it feels overwhelming.
That is the beauty of having a financial adviser. Their regular check-ins keep you accountable and proactive. And when they open up their professional ‘toolbox’ you’ll be surprised at what they bring to the table - from projecting your future financial growth to warning you about regulations and helping you hit the tax nail on the head.
Ultimately, lasting financial security isn't built by going it alone - it's built by knowing when to call in an expert.
This blog post was adapted from article recently seen on Cover Magazine.
Get advice
Planning your financial future doesn't have to be a DIY project. With Momentum Savings, you can partner with a qualified financial adviser who can recommend the right savings plan for your goals and help you stay on track to achieve them.
About the author
Andile Jonas
Head of Marketing at Momentum Savings
Andile Jonas heads up marketing and brand repositioning for Momentum Savings, Momentum’s long-term savings business. With more than 15 years’ experience across insurance, banking and investments, he has driven a shift toward a client-centred, digitally enabled brand narrative.
Andile is passionate about simplifying complexity, promoting conscious saving and supporting the critical role financial advisers play in shaping better financial outcomes for South Africans.
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