A brand new year is a great time to start building wise habits. When you’re making this year’s resolutions, try setting some goals that focus on your finances. Here are five personal finance strategies to get your new year started on solid footing. 1. Get Organized Leave last year’s habits with last year’s bills, and start the new year by organizing your finances. If you’re paying bills with checks, clean out a desk drawer or set up a folder system so you have one place to store your bills and receipts. Keep any tax-related records and receipts in one place, too, so you’re not scrambling to find paperwork at tax time.
Better yet, try out a financial software app that lets you snap photos of your receipts so you can keep track of where your money goes each month.
Book a monthly appointment with yourself to review your bills and decide on strategies for keeping debt to a minimum. If you haven’t gotten your free credit report in the past 11 months, do it now. Then set goals for how you can improve your credit score over the next year. 2. Reign in Your Holiday Bills It’s common to suffer from post-holiday blues once the credit card bills start arriving in the new year. Instead of procrastinating, make a financial resolution to tackle them head on. Open those bills immediately and start paying them right away. If you need some motivation, look at how much you’re being charged in interest each month, and think about how you could spend — or save — that money after your gift-giving debts are erased. 3. Save More Most South Africans are not saving enough for retirement. Whatever you may be putting aside already, consider paying your future self a little bit more by increasing your weekly or monthly savings by at least a percentage or two. Ideally, you want to have saved between eight and 11 times your annual salary when you’re ready to retire. Review your pension funds and other investments to ensure that you are saving enough for your retirement. 4. Spend Less Each Month Look for ways to save on your monthly bills. TV, phone and internet services can often be bundled with the same provider for a discount, as can car and home insurance. If you choose not to bundle, it’s still a good idea to call every few months to find out if your provider can rerate your insurance which can save you money. 5. Automate, Automate, Automate Saving money in the New Year will be much easier — and more efficient — if you set up an automatic withdrawal plan. Check what additional savings options your bank offers. You can probably set up monthly automatic transfers so that a designated amount is sent to a separate savings account before you have a chance to spend it.
If you haven’t already, go paperless by setting up automated bill paying so that monthly bill payments and charitable contributions are automatically withdrawn from your bank account. Not only does this ensure you never miss a due date, it removes the hassle of sitting down to do your bills manually each month.