By Jonathan Theunissen, CFP ®

The holiday season is a great time to look ahead and set the stage for a financially successful new year. Whether you’re working toward a specific investment goal or just wanting to get a better grip on your budget, why not set some time aside to take charge of your finances. Here are practical steps and tools available to help you start the year on a strong financial footing.

Reflect and Reset Your Financial Goals

Review what worked and what didn’t last year, then set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) for the year ahead.

Example Goals:

• Pay off your credit card debt by June.
• Save R1,000 per month for an emergency fund.
• Increase your retirement contributions by 2% of your salary.

Create or Revise Your Budget

Start by listing your income sources and all your fixed and variable expenses. Be realistic about your spending habits and plan for any upcoming changes, such as school fees or insurance premiums.

Most banking apps offer good budgeting tools. The Vault22 app (formerly 22seven) also works well. If you prefer spreadsheets you could pull transaction data from your online banking and create rules to categorise the data in your personalised spreadsheet.

Tackle Debt Strategically

Debt can hinder financial growth, so prioritize reducing it. List your debts by interest rate and consider using the snowball or avalanche method to repay them.

• Snowball method: Pay off the smallest debts first for quick wins.
• Avalanche method: Focus on high-interest debts first to save oninterest over time.

Build an Emergency Fund

If you don’t already have one, an emergency fund should be a top priority. Aim to save at least three to six months’ worth of living expenses in a separate, accessible, interest-bearing, account.

Review Your Insurance and Policies

The start of the year is a good time to review your insurance coverage. Ensure your life, health, disability, and property insurance policies are still aligned with your needs.

Maximize Tax Benefits

If within reach, take advantage of your Tax-Free Savings Account (TFSA) and Retirement Annuity (RA) annual contribution allowances before the end of February, to grow your wealth without paying tax on the interest, dividends, or capital gains and to reduce your taxable income.

Automate Your Savings and Investments

To ensure you stick to your financial goals, set up debit orders to your savings or investment accounts. Automating investment contributions ensures that your goals are prioritised rather than funded by whatever is left at the end of the month.

Invest in Financial Education

Knowledge is power when it comes to managing your money. Consider signing up for workshops, reading books, or taking courses to improve your financial literacy. We have a broad range of resources under the “media” tab on our website and our co-founders have both published a few great books on personal finances.

Schedule Regular Financial Check-Ins

Consistency is key to financial success. Set a monthly or quarterly “money date” with yourself or your partner to review your budget, track progress on goals, and make adjustments where necessary.

Seek Professional Advice

A financial planner can help you create a tailored plan to achieve your goals and navigate more complex areas like retirement planning, investments, or estate planning.

By taking these steps, you’ll not only start the new year with a clear financial roadmap but also set yourself up for long-term success. Remember, financial freedom begins with small, intentional changes that build over time. Let’s make 2025 your best financial year yet!

For personalized advice and support, feel free to reach out to us. Together, we can align your money with your life and work towards financial peace of mind.