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There’s been a pretty big shift in the world of financial advice over the past few years. We’ve moved from a rigid, one-size-fits-all approach to something that’s a lot more personal and flexible. Financial planning isn’t just about ticking boxes anymore - it’s about building something that actually fits into your life.

In our practice (and across the industry), we've noticed two main schools of thought when it comes to planning: the Traditional route and the more modern Lifestyle-based approach. And often, the sweet spot lies in a mix of both.

Let me break it down for you in plain English.

Traditional Financial Planning: Old School (But Still Useful)

This is your classic, numbers-driven style of planning. Think of it like building a sturdy house: you’ve got budgets, savings plans, investments, insurance policies, retirement funds - the works. It’s structured, methodical, and all about hitting financial targets.

The advisor usually takes the lead here, drawing up plans based on set financial goals. It’s efficient and great for people who love certainty and structure. But because it’s so formulaic, it can feel a bit cookie-cutter - and sometimes misses the personal side of things.

Great for people who:

• Want clear, measurable goals (e.g. “I want to retire at 60 with R5 million”)

• Prefer logic and numbers over feelings and flexibility

• Are mainly focused on growing and protecting wealth

Lifestyle Financial Planning: Money That Works for You

Now, this is where things get more personal. Lifestyle planning is all about you - your goals, your dreams, your lifestyle. Whether it’s starting a side hustle, traveling more, or spending extra time with your kids, the idea is to build a financial plan that supports the life you actually want to live.

Here, the advisor is more of a guide than a boss. We listen, ask questions, and help you figure out what really matters. Then we create a plan that puts your values front and centre. The numbers still matter - but they’re the tools, not the whole point.

Ideal for people who:

• Want their money to support their dream life—n`ot just sit in an investment account

• Are going through a life change (new career, new family, approaching retirement, etc.)

• Want a more collaborative, flexible approach to planning

Quick Comparison Here’s how the two approaches stack up:

So, Which One’s Better?

Honestly? It depends on you.

If you like structure and are working towards clear money milestones—traditional planning might be your vibe.

But if you want something that’s more personal and fits into your lifestyle—then lifestyle planning will speak your language.

Most of our clients actually land somewhere in between. We take the solid foundations of traditional planning, and then weave in the flexibility and heart of lifestyle planning. That way, your financial plan isn't just a spreadsheet - it’s a roadmap to a life you love.

Why not chat to your 1.618 Advisor and see what mix of traditional and lifestyle planning works best for you? It’s not about either/or. It’s about finding the right balance - that golden ratio - to get you where you want to go, on your terms.

Next month Warren Wessels will dive even deeper into this with a full feature on the topic from an Advisor’s point of view.