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Five financial don'ts for January 2020

17 Dec 2019

January is known to be the most unpopular month of the year, due to the financial hangover most bank accounts are suffering at this time of the year. To get through the year, we make promises to ourselves that we will quit smoking, drink less alcohol and live a healthier lifestyle.

Lindi Monyae, Managing Executive for Liberty's Emerging Consumer Market says, "The reality is that when you want to achieve any of these goals, you need to put in the hard work. When it comes to your money, you'll probably find that you need to make significant sacrifices so that you can maintain and improve your lifestyle over the long-term."

Five financial don'ts for 2020

  1. Don't forget your budget
  2. Make sure that you know exactly how much money enters and leaves your account every month. This will help you to plan your finances more efficiently in the New Year. You need to monitor every transaction - from the time your salary enters account and all the transactions that take money out of your account.

  3. Don't allow debit orders to bounce
  4. When debit orders bounce, your bank will charge you for the unsuccessful transaction. These late fees are additional expenses that eat away at your finances. So, make that you know when your debit orders are going off and that you have enough money in your account to avoid late penalties.

  5. Don't waste your annual bonus
  6. Some companies only pay annual bonus after the festive season, in January or March, to help employees get through the tougher months. If you are expected an annual bonus, or any type of cash injection, don't squander it. Save as much of it as possible and use it to pay off your debts.

  7. Don't neglect your insurance cover
  8. Make sure that you are financially protected in terms of short- and long-term insurance cover through the year. If you are involved in a car accident, a family member dies or if you are diagnosed with a critical illness, then you can rest assured that you have the right insurance cover in place to help you through the tough financial times.

  9. Don't ignore your financial adviser

It doesn't matter how much money you earn or what the size of your bank account is, if you need financial advice, take it from the right source. You wouldn't take medical advice from a car mechanic, so make sure that you take your financial advice from a qualified professional.

Monyae concludes, "Don't neglect the importance of getting the right financial advice. Kick the New Year off on the right foot and contact your financial adviser to help you plan for a prosperous 2020."

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Liberty Group Limited (Reg. no 1957/002788/06) is a registered Long Term Insurer and an Authorised Financial Services Provider (FAIS no 2409).