The new year offers people a great opportunity to get their finances in order, according to Wikus Olivier, managing director at CreditSmart Financial Services.
Olivier said that making smart, savvy money decisions early in your financial timeline is essential to help you start ticking off your financial goals as well as achieving future financial success.
“Embrace the opportunity to kickstart 2024 as your best financial year yet by implementing these simplistic, yet impactful, money moves to get you on track,” Olivier said.
Here are six ways you can make 2024 your best financial year:
Define your money goals and financial plan
People need to figure out what they want to achieve financially including your short-term and long-term goals.
According to Rita Cool, head of individual consulting strategy at Alexforbes, people can set short-, medium- and long-term financial goals for different timelines.
Whether you want to save for a car or if you are planning to buy a house it is important that you have a reasonable timeline that goes with each goal. Having a timeline will help you stay motivated.
Identify different types of expenses within your monthly budget
According to Olivier, people should think of their budget as a puzzle. Instead of treating all your expenses as one big piece, break them into smaller parts, like groceries, holidays, or school costs.
“Focus on particular pieces of the puzzle each month. For example, in January, you might need to use a part of your monthly budget for school supplies and extracurricular activities, while in April, it could include extra grocery costs for stocking up on toiletries and cleaning supplies again, Oliver said.
By dividing your budget into manageable chunks, you will have a clear spending limit for each specific need every month.
Don’t wait for the storm to start building your financial safety net
Emergencies can happen when you least expect it, so you should start setting aside money for an emergency fund as early as possible.
Even a small amount like R50 a month, can add up over time and give you a safety cushion when you need it most.
Katlego Gaborone, a financial planner at Momentum said that people need to have at least three months’ salary saved up in an emergency fund.
Make saving money a fun game by trying out different challenges
Olivier said: ‘You can experiment with a no eating out challenge, where you cook at home for, say the first quarter of the year or take on a savings challenge to see how much extra money you can squirrel away.“
You need to take saving money challenges seriously because it will show your commitment to save whenever and however you can.
Develop good money habits
Smart money management like good financial habits and a disciplined approach to spending, saving or investing can pave the way for long-term financial stability.
This means that people need to avoid any impulse purchases. Before you buy something, ask yourself if it’s a need or a want and reflect on the consequences.
“It’s a habit that you won’t regret and perhaps the smartest money move you can incorporate into your lifestyle,” Olivier said.
Tackle your debt head-on
When you pay off your debt bit by bit using the snowball method or tackling your high interest rated debt first using the avalanche method, you reduce your stress levels and open the door to focus on your 2024 financial plan.
You should not neglect to regularly check your credit report, it’s like your financial report card. If you are already feeling overwhelmed because of your debt situation, a regulated, legal debt solution can be your way to go.
IOL Business