As we step into the new year, let’s seize the opportunity to reassess our financial strategies and set the stage for a prosperous future. Regardless of where you are in your financial journey, crafting realistic and impactful resolutions can significantly enhance your financial well-being. We spoke to Thulisile Nkomo, and Kim Lewis, experienced financial advisors with whom we’ve partnered in this series, to come up with ten resolutions that are sure to set you up for a financially empowering year.
01 Create a budget and stick to it
Budgeting is a fundamental aspect of financial success. Start the year by creating a realistic budget that takes into account your income, expenses, and savings goals. Be diligent about tracking your spending and make adjustments as needed. A well-managed budget not only helps you save more but also ensures that you clearly understand where your money is going.
02 Build your emergency fund
Allocate a portion of your end-of-year bonus (if you’re lucky enough to have received one) to establish or reinforce your emergency fund. This financial cushion ensures you won’t resort to costly debt during unforeseen circumstances.
03 Debt prioritisation
Talking about debt – clearly understand your debts, including amounts, interest rates, and repayment terms. Develop a strategy to reduce and eliminate high-interest debts (such as credit card debt) systematically.
04 Plan for annual expenses
Identify upcoming annual expenses such as school fees, car services etc. for the next year and allocate funds accordingly. Adjust your budget to accommodate monthly contributions, ensuring you’re well-prepared for these financial commitments.
05 Bank account health check
Conduct a thorough review of your bank accounts to scrutinise debit orders. Confirm the accuracy of amounts and relevance of debit orders, ensuring your finances are streamlined and efficient.
06 Maximise workplace benefits
Explore the benefits offered by your employer, such as group schemes encompassing death, disability, and retirement benefits. Understand the extent of coverage and how these benefits contribute to your overall financial wellbeing.
07 Optimise medical aid coverage
Evaluate your medical aid plan for the year, paying attention to preventive screening benefits. Utilise these screenings to detect and address potential health issues early, mitigating future financial burdens.
08 Invest in financial education
Dedicate time to enhancing your financial literacy. Attend workshops and webinars or read literature that expands your personal finance knowledge, empowering you to make informed decisions.
09 Set specific savings goals
Define clear savings goals for different aspects of your life, such as a travel fund, education fund, or retirement fund. This targeted approach makes your savings more purposeful and achievable.
10 Review and adjust your investment portfolio
Assess your investment portfolio’s performance and align it with your financial goals. Meet with your financial advisor to ensure your investments align with your risk tolerance and objectives.
By incorporating these strategies into your financial plan, you’ll be well equipped to make 2024 a year of financial growth, resilience, and fulfillment.
