2025 is right around the corner and South Africans should take stock of their finances ahead of the new year. <\/p>\n\n\n\n
JustMoney.co.za completed a checklist to help South Africans avoid festive season pitfalls. <\/p>\n\n\n\n
\u201cPlanning is essential to close out the year on a high note and lay the groundwork for a financially healthy new year,\u201d said Sarah Nicholson, operations manager at JustMoney. <\/p>\n\n\n\n
\u201cTaking these steps now will save you stress and money later.\u201d<\/p>\n\n\n\n
Review your medical aid plan<\/strong><\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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. <\/p>\n\n\n\n For those considering switching to a new provider, be aware of possible waiting periods or exclusions.<\/p>\n\n\n\n Make the most of your bonus<\/strong><\/p>\n\n\n\n A year-end bonus should be spent wisely. <\/p>\n\n\n\n One should first start by paying off debt, adding to their emergency fund, invest in tertiary education or property ownership.<\/p>\n\n\n\n Audit subscriptions and contracts<\/strong> <\/p>\n\n\n\n One should also look at ongoing subscriptions, such as gym memberships and online streaming, and terminate the ones that are no longer in use.<\/p>\n\n\n\n They should also compare quotes for insurance renewals to ensure that you get the best deal. <\/p>\n\n\n\n Check your investments<\/strong><\/p>\n\n\n\n One should consult a financial adviser to ensure that their investments still align with your risk tolerance and goals. <\/p>\n\n\n\n They should make adjustments if required, but they should remember that successful investing is generally about time in the market, not timing.<\/p>\n\n\n\n Plan for holiday spending<\/strong><\/p>\n\n\n\n Set a realistic budget for gifts, travel, and entertainment. <\/p>\n\n\n\n Shoppers should take advantage of discounts and loyalty points, and consider DIY gifts to save even more.<\/p>\n\n\n\n Prepare for school expenses<\/strong><\/p>\n\n\n\n Those with kids should start budgeting for school fees, uniforms, and supplies for the new academic year. <\/p>\n\n\n\n They should also consider setting up a long-term education savings plan.<\/p>\n\n\n\n Check your credit report<\/strong><\/p>\n\n\n\n South Africans should also check if their credit scores will impact their ability to secure loans, get favourable interest rates and buy property. <\/p>\n\n\n\n South Africans should also assess how their financial habits, such as making timely payments or managing debt, have impacted their credit scores. <\/p>\n\n\n\n They should also check your report for discrepancies or signs of fraud. <\/p>\n\n\n\n Donate wisely<\/strong><\/p>\n\n\n\n Not only does supporting a registered, well-governed nonprofit organisation help those in need, but it also offers tax benefits. <\/p>\n\n\n\n Prepare for tax season<\/strong><\/p>\n\n\n\n They should also start gathering documents such as medical expense receipts and proof of retirement contributions. <\/p>\n\n\n\n Moreover, making an additional retirement annuity payment before 28 February can reduce one’s tax liability. <\/p>\n\n\n\n Tackle debt strategically<\/strong> <\/p>\n\n\n\n South Africans should also pay off high-interest debts like credit cards and personal loans. <\/p>\n\n\n\n Prioritise paying off high-interest debts, such as credit cards and personal loans. If you\u2019re struggling, explore debt consolidation options or consult a financial planner or coach.<\/p>\n\n\n\n Goals for 2025<\/strong><\/p>\n\n\n\n Nicholson added that South Africans should check on their progress and set goals for 2025.<\/p>\n\n\n\n \u201cBy reflecting on the past year, you can identify what worked well and where there\u2019s 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,\u201d she said. <\/p>\n\n\n\n \u201cSetting 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.\u201d<\/p>\n\n\n\n
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