With the end of the year drawing near, most South African businesses shut their doors for the festive season and give their employees some well-deserved time off. Much time is spent reflecting over the year that has passed and we dwell on the good times and the bad, but how many of us actually start looking ahead and planning for the New Year?
15 December 2016
The New Year is right around the corner and you are probably planning a number of resolutions that you are hoping to adhere to in 2017. The New Year is not only a time to review your personal goals, but also a fresh start for your financial goals.
January is the perfect time to review and assess your current financial plan and decipher ways in which you could improve on it in the New Year. It is a good idea to set out clear and concise financial resolutions for the New Year to ensure that your financial choices are beneficial to your future and that you don’t end up dealing with any overwhelming debt or expenses.
Here are a few financial resolutions to get you started:
Create an emergency fund
It is important to create and build an emergency fund so that you are prepared for a costly unforeseen circumstance or unplanned expenses. Your goal should be to try and save at least three months’ worth of living expenses so that your budget is not affected if an unexpected cost comes up.
Pay off your debt
If you receive any extra money in the New Year, instead of splurging on something that you don’t really need, put the money towards paying off your debt to lighten your financial load. Putting a lump sum towards your debt will lower your monthly debt repayments, freeing up some of your income to add to your savings fund or put towards other expenses.
Pack a lunch instead of eating out
You will save a considerable amount of money if you plan and pack a lunch to work a few days a week instead of eating out or grabbing a take away. Packing your own lunch is a cheaper alternative but you will also save in bank charges by not swiping your card or withdrawing money every day.
Setting realistic and concrete financial resolutions and sticking to them is sure to help you reach your bigger financial goals in the future as well as making sure that you endure the least amount of financially related stress possible.