WORLDVIEW: Traditional personal finance advice doesn’t work today

For decades, personal finance experts have recommended the same thing. Save 10-15% of your income for retirement. Get rid of your debts before you invest. Build an emergency savings account to cover three to six months of expenses.

But these days, the economy ain't what it used to be – and not just in South Africa. Around the world, young people are taking on more education debt. They're living at home longer and struggling to buy ever-more expensive housing. They're having a tough time finding good jobs and earning less for longer. Almost all workers around the world have seen their wages stagnate for at least ten or twenty years (after accounting for inflation). More and more people rely on debt to meet their monthly expenses. This is all happening in SA and almost every other country on earth.

It all adds up to a world in which traditional personal finance advice can seem like the bizarre relic of a bygone era. For twenty-somethings living at home and paying off student loans, saving for a house can seem like an impossible dream. For stressed, middle-aged workers caring for children and ageing parents on salaries that never seem to rise, retirement accounts are not a priority.

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