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Financial Fitness - 7 Saving Tips For The New Year

A Financial Fresh Start In 2025

By Jessie Taylor

The festive season often leaves wallets a little lighter, but the start of 2025 presents a perfect opportunity to reset and focus on building financial stability. With a little planning and discipline, anyone can improve their financial situation and move towards long-term prosperity. Small, consistent actions can help build a strong foundation for long-term financial success

Here are some actionable tips to help you kick off 2025 with a sense of confidence and financial empowerment:

Start Small, Save Big

The concept of saving may feel daunting, but it doesn’t have to be overwhelming. The key is consistency. Rather than aiming for large savings goals right away, start small—commit to saving even a modest amount each week or month. Whether it’s R50 or R500, the important thing is to stay consistent. Automatic transfers to a dedicated savings account can simplify the process. By setting up a system where a portion of your salary is automatically transferred to savings, you can build up a substantial sum by the end of the year without having to think about it. Over time, these small contributions will add up, helping you cover unexpected expenses or fund a future goal, whether it’s a holiday or an emergency fund.

Declutter Your Spending

It’s easy to lose track of where your money goes, especially when there are recurring expenses. Take some time at the start of the year to review your spending and identify areas where you could cut back. Are there subscriptions you no longer use or luxuries that add little value to your life?

Cancel unnecessary services, consider skipping a few takeout meals, and redirect the money you save towards your emergency fund, paying off debt, or other goals. The more mindful you are of where your money is going, the easier it will be to free up funds for more important or fulfilling financial goals.

Keep Tabs On Your Credit

Your credit score is an important part of your financial health. A good credit score opens doors to better loan opportunities, lower interest rates, and financial flexibility. Focus on paying your bills on time, and strive to keep your debt-to-income ratio (the ratio of your monthly debt payments to your monthly income) under 30%. Doing so will help keep your credit score high and enhance your ability to access financial opportunities in the future.

Celebrate Your Progress

Financial goals can take time to achieve, but it’s important to recognize your progress along the way. Set small milestones throughout the year—whether it’s saving your first R1,000 or paying off a credit card—and celebrate when you reach them. Rewarding yourself helps to stay motivated and gives you a reason to keep pushing forward, even when financial progress feels slow. Small wins add up over time, and they can help reinforce good financial habits for the long term.

Save or Invest Your Bonus

For many South Africans, a 13th cheque or a year-end bonus is a welcome financial boost. While the temptation to spend this money on gifts or festive indulgences is strong, consider saving or investing your bonus instead. High-interest savings accounts often allow you to lock in your savings for a certain period, offering a higher interest rate than a regular savings account. This can help your money grow faster. If you’re looking to plan for the future, this is a great opportunity to start a new investment or add to an existing one. A financial advisor can guide you on the best options for your goals, whether it’s retirement savings or generating additional monthly income.

Use Cash Instead of Your Credit Card

While credit cards may seem like a convenient way to manage expenses, they often come with high interest rates if balances are not paid in full. Using your credit card for large purchases, especially during the festive season, can quickly lead to a cycle of debt. Instead, try using cash for non-essential purchases. If you can’t afford to buy something outright, it might not be the right time to make the purchase at all. Paying with cash means you won’t be burdened by future interest payments, and it encourages more mindful spending.

Renegotiate Your Contracts

January is a good time to review your contracts, such as gym memberships, insurance policies, and subscription services. Many contracts automatically renew at the start of the year, and you may find that you’re paying for services you no longer need. Consider renegotiating the terms of your contracts. For example, if you have a gym membership but aren’t using it as often as you’d like, consider downgrading to a more affordable plan. Similarly, review your cellphone contract to see if you could save money by switching to a more budget-friendly option.

As you embark on the new year, take these small yet effective steps to gain control over your finances. By starting small, reviewing your spending, and planning ahead, you can make 2025 a year of financial empowerment. Whether you’re saving for a rainy day, investing for the future, or simply learning to spend more mindfully, the key is consistency. With the right habits in place, financial success is within reach.

Source: Wonga | Old Mutual | IOL

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