The financial checklist for South Africans heading into 2025

2025 is right around the corner and South Africans should take stock of their finances ahead of the new year.

JustMoney.co.za completed a checklist to help South Africans avoid festive season pitfalls.

“Planning is essential to close out the year on a high note and lay the groundwork for a financially healthy new year,” said Sarah Nicholson, operations manager at JustMoney.

“Taking these steps now will save you stress and money later.”

Review your medical aid plan

Every year-end, medical aid allows its members an opportunity to modify their plans which would become applicable starting from the first day of the upcoming year.

South Africans should ensure that their plans still meet their needs, that their dependents are adequately covered and that they have optimised their annual benefits.

For those considering switching to a new provider, be aware of possible waiting periods or exclusions.

Make the most of your bonus

A year-end bonus should be spent wisely.

One should first start by paying off debt, adding to their emergency fund, invest in tertiary education or property ownership.

Audit subscriptions and contracts

One should also look at ongoing subscriptions, such as gym memberships and online streaming, and terminate the ones that are no longer in use.

They should also compare quotes for insurance renewals to ensure that you get the best deal.

Check your investments

One should consult a financial adviser to ensure that their investments still align with your risk tolerance and goals.

They should make adjustments if required, but they should remember that successful investing is generally about time in the market, not timing.

Plan for holiday spending

Set a realistic budget for gifts, travel, and entertainment.

Shoppers should take advantage of discounts and loyalty points, and consider DIY gifts to save even more.

Prepare for school expenses

Those with kids should start budgeting for school fees, uniforms, and supplies for the new academic year.

They should also consider setting up a long-term education savings plan.

Check your credit report

South Africans should also check if their credit scores will impact their ability to secure loans, get favourable interest rates and buy property.

South Africans should also assess how their financial habits, such as making timely payments or managing debt, have impacted their credit scores.

They should also check your report for discrepancies or signs of fraud. 

Donate wisely

Not only does supporting a registered, well-governed nonprofit organisation help those in need, but it also offers tax benefits.

Prepare for tax season

They should also start gathering documents such as medical expense receipts and proof of retirement contributions.

Moreover, making an additional retirement annuity payment before 28 February can reduce one’s tax liability.

Tackle debt strategically

South Africans should also pay off high-interest debts like credit cards and personal loans.

Prioritise paying off high-interest debts, such as credit cards and personal loans. If you’re struggling, explore debt consolidation options or consult a financial planner or coach.

Goals for 2025

Nicholson added that South Africans should check on their progress and set goals for 2025.

“By reflecting on the past year, you can identify what worked well and where there’s room to improve. This process encourages a more thoughtful approach to managing your finances, enabling you to align your spending, saving, and investing habits with your long-term objectives,” she said.

“Setting and achieving financial goals, whether big or small, will give you a sense of accomplishment and help keep you motivated to achieve financial security and independence.”

Read: Landlords shocked by ‘surprise’ R2,200 fee in South Africa