Personal Finance | Master your 2024: Monthly planning hacks for financial freedom
Plan and save for major expenses such as school tours, a major car service or holidays.
JANUARY: Update your budget and plan for expenses
Write up a budget. Pull out your bank statements and keep track of your day-to-day spending so you get a handle on where your money is actually going.
This is a good time to take control of your spending and commit to a one-month spending diet where you will not spend any money on nonessentials.
Plan and save for major expenses such as school tours, a major car service or holidays.
Make a note of the expiry dates for your driver’s licence or car licence and renew them timeously to avoid penalties.
FEBRUARY: Sort out your taxes
Make sure you are optimising your tax deductions. Find out what expenses you need to keep track of and start getting your supporting documents in order for your tax return.
READ: Personal Finance | This is the best time to review how much you are worth
You can top up your retirement annuity and contribute to a tax-free savings account before 29 February. If you have not opened a tax-free savings account, now is a good time.
MARCH: Review your insurance
Take time to read through the fine print of your short-term insurance contracts. Make sure you understand what benefits you are insured for and what exclusions there may be. For short-term insurance on your car and home, shop around and compare quotations from other insurers but make sure that you know what cover each insurer offers for the premiums you pay. You may find that one insurer offers you cheaper premiums but will charge you a much higher excess when you make a claim.
Review your life assurance needs if you have had a child, got married, changed jobs, been retrenched or received a raise.
Consider consolidating your life insurance policies and check that you are not overinsured – for example, most life insurance includes funeral cover which is far more cost-effective than taking out a separate funeral policy.
APRIL: Review your will
Any life changes such as a marriage, divorce or children will require you to update your will. If you don’t have one, prepare it now. A will is valid if it is signed in ink with two witnesses who are not beneficiaries. Make sure you nominate an executor – this could be a trusted family member or friend, or you can appoint a professional. You have the right to negotiate the executor fees, and this can be included in your will.
MAY: Medical check
How much money is still available in your medical fund? Going into winter, we normally see an increase in doctor visits and medication. Ask for a discount for immediate payment of medication and medical services such as doctor visits or blood tests. By paying directly and claiming back from your medical scheme, you could make your savings stretch further. Check what services are paid for from the risk portion of your medical scheme. These could include flu vaccinations and annual preventive check-ups such as dental and pap smears. Book these now.
JUNE: Review your budget and create a debt repayment plan
Now is a good time to review the budget you set at the beginning of the year. Are you on track or overspending? What can you cut back on to create some extra cash? Use this to settle your debts sooner or add to savings. You may need a spending detox and again commit to a month of spending only on essentials.
It is six months to the festive season – try to put away some money to pay yourself a 13th cheque.
JULY: Focus on savings during savings month
Sometimes the hardest part of saving is opening the account. If you do not have a tax-free savings account, commit to opening one now. Start investing, even if it is just R300 a month. Even small contributions to your investments and debt reduction have a positive impact on your net worth.
READ: Personal Finance | Tips on how to survive ‘Januworry’ after festive spending
Do a review of existing investments to ensure they still meet your needs. If your long-term savings are sitting in cash, you need to look at higher-growth investment options.
AUGUST: Think big
Set time aside to think about your long-term goals and how to achieve them. Talk to your partner about money and bring in a financial adviser if necessary, so that you can plan your future together.
SEPTEMBER: Spring clean
Clean your clutter and get your admin sorted and filed. Draw up a list of all your policies, accounts and investments so they are easily available in one place. This is known as a life book and can be a very useful document when reviewing your finances holistically.
It also makes it easier for your family if something happens to you. In doing your admin, you may even discover policies or investments you had forgotten about. This could be an opportunity to draw up a spreadsheet of your net worth – this is a list of your assets less your liabilities.
OCTOBER: Review your medical scheme
Medical scheme increases are released this month and you have the opportunity to select the plan for next year. Compare your medical needs with the benefits you can receive and the premium you are expected to pay for those benefits.
NOVEMBER: Create a festive season plan
This is the time to plan how you are going to manage the festive season spend. Start having conversations with your family about expectations and budgets. If you set boundaries and expectations now, you will have a less stressed festive season. Review your reward programmes and see how you can use them to ease your festive season budget.
DECEMBER: Be prepared
Don’t forget that you must still pay debit orders in December and account for them before you spend any money. Remember, it is a long way to your January paycheque and, after all the parties are over and the visitors have left, you still need to buy groceries and pay for electricity, among other regular costs.
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