Why Hanging Up Your Financial Superhero Cape is a Smart Money Move

30 May 2024

The ‘Superhero Syndrome’ is becoming increasingly evident in today’s information-driven world, particularly in personal finance. Driven by self-reliance and perfectionism, more individuals are opting to manage their own finances, believing they can do everything themselves.

Lee Hancox, Head of Channel and Segment Marketing at Sanlam, says that although this mindset can be empowering, evolving financial complexities require even the most capable individuals to collaborate with professionals for financial guidance and advice.

"This DIY approach to financial planning can sometimes do more harm than good – leading to several pitfalls. That’s why we want to empower South Africans with the support and expertise to make informed financial decisions. By embracing collaboration and professional advice, more South African heroes can achieve financial confidence and security, ensuring their financial future is as bright and stable as they envision."

Here, Hancox unpacks the Superhero Syndrome, exploring its impact on financial wellbeing and offering strategies to foster healthier approaches to money management.

The Pitfalls of Being a DIY Hero

Hancox says the allure of being a financial superhero is strong, with the idea of independently managing all aspects of one’s finances empowering. However, this mindset can result in emotional decision-making. “Humans are emotional, which can lead to poor financial choices due to emotional bias. Limited knowledge and resources can also hinder the effective management of complex financial tasks. Additionally, taking on the full burden of financial management can lead to overwhelming stress and burnout, ultimately decreasing financial confidence.”

Hancox emphasises the importance of recognising one's limitations, “Managing a simple budget is very different from managing investment strategies, wealth protection, and wealth creation strategies. The latter requires taking a long, hard look realistically from a time, knowledge, and resources perspective to determine your strengths and weaknesses. An individual’s past relationship with money can also influence this decision-making process."

Strategies for Better Financial Management

Acknowledge your limitations:Hancox says the first step to overcoming Superhero Syndrome is acknowledging that one cannot do everything. “Recognising personal limitations like time, knowledge, and resources is crucial. This self-awareness allows individuals to identify areas where they need assistance and seek help proactively.”
Seek professional financial advice: Engaging with a financial adviser can be transformative. Hancox says financial advisers are experts in their field, with the knowledge and tools to provide tailored financial strategies. They offer an objective, unbiased perspective that can help mitigate emotional decision-making.
Build a support network: Creating a support network is essential. This network can include financial advisers, mentors, and trusted friends or family members. “Collaborating with these individuals can provide diverse perspectives and valuable insights, making financial management more comprehensive and less burdensome.”
Embrace financial education:Financial literacy is powerful in combatting Superhero Syndrome. “Educating yourself about financial principles, investment options, and economic trends can empower you to make informed decisions. That’s why we need to instil financial literacy in our kids at a young age and have those conversations with family members.”
Develop a collaborative financial plan: Hancox says financial planning should be collaborative. "Financial planning is not something that should happen to somebody. It's something you should be involved in. Working closely with an adviser to develop and maintain a financial plan helps you meet your goals, account for potential blind spots, and build financial confidence."
Talk about finances more: Sharing and being vulnerable about the frequently taboo topic of finances with trusted loved ones can be empowering. These courageous conversations can drive better financial decision-making, stronger relationships, and improved mental well-being. “Sanlam realises that encouraging South Africans to talk about finances more will help normalise these discussions, help individuals gain new perspectives, reduce financial stress, and help people build a healthier relationship with money.”

Collaborating with an Adviser to Build Financial Confidence

Collaboration with financial professionals alleviates the burden of financial management but also builds financial confidence. This confidence allows individuals to focus on their personal and professional goals, contributing to overall wellbeing.

Hancox adds, "Even as a certified financial planner (CFP)®, I know I'm too close to my finances. So, having an adviser gives me the confidence that I am doing the best for my family without any of my biases affecting decisions."

Advisers can help individuals overcome Superhero Syndrome through:

Holistic financial review: Advisers can conduct a comprehensive review of an individual's finances to identify strengths, weaknesses, and opportunities for improvement
Tailored financial strategies: Based on the review, advisers can develop customised financial strategies that align with the individual's goals and risk tolerance
Impartial decision-making: Advisers can provide an unbiased perspective, helping clients make informed decisions without emotional interference
Continuous support and guidance: Financial planning is an ongoing process. Advisers offer support, helping clients adapt to life changes and economic fluctuations.

Embracing the Financial Sidekick

Seeking support and collaboration in financial matters does not diminish one's superhero status. Just as iconic superheroes rely on their sidekicks and teams, recognising the value of partnership is a sign of strength and self-awareness.

Hancox concludes, "Even financial advisers have financial advisers. We know we need a sidekick to help us make impartial financial decisions about our future. Asking for help doesn't detract from your superhero status. It indicates self-awareness and the courage to say, ‘I need to put my trust in a different process besides mine so I can live with confidence’."