Now that all the chaos that comes with Christmas has subsided, this is the perfect time for a serious financial detox! Take time over the holidays to sit back and consider those all-important numbers and take some active steps to review and reset your personal financial goals.
Creating a detailed budget is the easiest way to get a complete overview of your finances, as you’ll be able to identify where your money is going and what’s coming in.
Creating a budget can also help clear up uncertainty or fear around money. Identify which category you’re spending the most in and see what potential savings you could make to help create a better, stronger savings strategy.
Now that you’ve reviewed your budget, you’ll know how much you have available to save so you can plan what you want to do with that money. Maybe you want to save up for a dream trip in 2022 or upgrade your car in 2023!
Maybe you want to invest in your children’s tertiary education or save for a down payment on a house. You need to think about what savings goals you can achieve now and put your plan into action.
If you haven’t reviewed your pension in a while, now is a good time. Perhaps the value of your fund has gone down or you are sure that your current fund is the right one for you?
Contact a financial advisor for an in-depth review to help ensure your fund is in line with your unique personal circumstances and retirement goals.
Every year when the tax deadline arrives, you may be thinking “next year is the year I will be the most efficient in managing my taxes”, well now is the time to review your entire tax situation and make sure that you are claiming all the relief to which you are entitled.
Take a look at the various ways you can claim more tax back, like perhaps increasing your pension.
Having insurance is a responsible and necessary part of life; however, you may find that you’re paying for coverage you don’t necessarily need, or perhaps you’re taking unnecessary risk by not having enough coverage.
As you review your insurance policies, you may find that you could save money or that you are uninsured in an area where you need coverage.
Consider reviewing your credit cards and all of your loans, including your mortgage.
We are currently seeing the lowest mortgage rates for years, so now is a great time to consider refinancing and locking in a lower rate.
Engaging the services of a professional financial advisor will ensure that you are in the best possible position to achieve your financial goals. They’ll help you stay on track and review every area of your finances to make sure it works for you. This will help you gain a clear plan and strategy around your finances and the confidence that you’re on the right track.
While your finances may seem a bit out of control during the holiday season, a new year brings a fresh start. Taking stock now and taking back control of your financial goals will give you much more peace of mind.
Happy New Year and happy planning!