Get your money ready for 2020
18 Nov 2019
Now is the perfect time to look at your finances. As we come to the end of the year, most people are focused on planning their holiday spending. However, money is tight for most South African earners. While the holiday season gives us an opportunity to take a break, you also need to be cautious when it comes to how you choose to spend your money and how you manage your debt so that you don't put yourself into a financial hole ahead of the New Year.
Lindi Monyae Executive for Liberty's Emerging Consumer Market says, "As the saying goes, ‘with knowledge comes power’, by putting yourself in the driver’s seat, you give yourself the tools and skills needed to successfully navigate any challenges that may come your way.”
Four tips to getting your money ready for 2020:
Take a closer look at your monthly budget
Gather all your bank statements and go through every line item. Make a note of your bank charges, debit orders and daily financial responsibilities. Compare how much money you earn to how much money you spend. This will give you a fair idea of your financial state.
Make a note of non-essential spends
When you are cash strapped, it's sometimes difficult to identify ways to cut on your budget. However, every cent you earn must be accounted for. Look for opportunities to reduce your spending, like cutting back on non-essentials like alcohol and tobacco. Not only do these reduce your monthly cash today, they also have a long-term impact on your physical health.
Plan for the unexpected risks
The unexpected death of a loved one can leave you clutching for straws if you are not prepared. It is important that you include a certain level of
risk planning to financially protect your family from life's unexpected events. Liberty offers insurance cover that can be tailored to your specific risk needs.
Ask for help if you're struggling
"No matter your pay cheque, or skills level, sound financial advice is invaluable. If you are feeling uncertain about any of your current policies, or whether you are feeling like you need to do a refresher on your finances, speak to a professional sooner rather than later for greater peace of mind," explains Monyae.
If you feel overwhelmed by your financial situation, it is always a good idea to ask for help. This doesn't mean making more debt with loan sharks or pay day loans; you need to get the right level of advice from a financial adviser. Also speak to your bank and find out if they offer financial advice services. Many financial services providers offer the first consultation at no charge.
Monyae says, "South Africans need to start looking at getting financial advice as early as possible, so their money can work for them in an already tough economy. Just as a company needs to review its financials to determine the liquidity of the firm, so do individuals."
For more information on how Liberty can help you manage your financial situation in 2020 more effectively, speak to a Liberty Financial Adviser today.