9 steps to a financially fit 2020

21/01/2020

Losing weight, getting to the gym three times a week, cutting down on sugar, increasing your savings, learning a new language… what are your resolutions for 2020? How likely is it that you will stick to them? 

We all mean well when we giddily make plans at the beginning of January. While we’re pretty good at keeping to our resolutions for the first few weeks, come February, we’re buying things we don’t need and going in for another helping of dessert. 

Also, have you seen the parking situation at the gym in February, compared to January? It’s much emptier since people’s fitness resolutions fade as quickly as their savings accounts. 

We get it — it’s hard to keep up the good intentions. That’s why we’ve broken a big financial resolution into smaller steps that will help you to achieve financial fitness in 2020. 

Here are the steps on how to save money each month and end off 2020 on a good foot: 

  1. Do a stock take and assess your situation

    Knowing exactly what you have, how much you owe, and what’s lacking in your financial plan can help to guide you on what you need to do in the future.

  2. Draw up a budget

    It’s not the most fun of exercises because it means you not only have to take a hard look at your situation, but also cut down where possible.

    By figuring out your fixed and variable expenses and scrutinising what you’re spending, you’ll be in a better position to manage your money.

    The budget rule of thumb is the 50-20-30 method: 50% of your net income should go towards your needs, 30% towards your wants, and 20% to your savings options, and debt repayments.

    For this to work, you need to stick to the limits that you set for yourself and distinguish between a need and a want.

  3.  Review your insurance

    Are all your policies up to date and are you sufficiently covered? You could be financially crippled if you’re in an accident, for example, and you don’t have car insurance. If something happens to you and you don’t have life insurance, then your family carries the huge financial burden.

  4. Start saving for your child’s university education as soon as possible

    By putting away for university now, you save your child the burden of paying back university loans which will affect their financial fitness as adults. Look at the best savings plan available and just get started. The sooner you start, the less you have to put away in the long term.

  5. Start settling the debt

    Whatever debts you have, start by paying off at least one rather than trying to settle all of them at once — which might not be feasible. Choose one with the highest interest rate, like a credit card, and put aside an amount each month in your budget to start paying it off.

  6. Start small and start saving

    One of the easiest ways to start saving is with a flexible savings account. This allows you to choose how much to deposit and when to deposit. You have full access to your cash in case of an emergency, but your money will still grow if left to accumulate interest.

  7. Put aside money for emergencies

    Setting up an emergency fund prevents you from dipping into your savings, which isn’t there for fixing the plumbing or buying new tyres. A comprehensive budget will help you to decide just how much you can afford to put aside for emergencies and savings.

  8. Shop around

    Are you getting the best medical cover for what you’re paying, and does your bank offer the best savings interest rates? It takes a bit of work, but shopping around and finding good services at better rates could save you/or earn you thousands in the long run.

  9. Consider a Savings Pocket

    If you’re saving for something big, like a holiday with a group of friends, then the MyWORLD Savings Pocket from African Bank is a great option. It’s linked to your Primary Account, and allows the Primary Account Holder to save at SA’s best interest rate of 6.5%* interest per annum on any positive balance while enjoying immediate access to their funds.

    You can add up to 10 members to a Savings Pocket, all of whom will be allowed to view the balance and make deposits.

Up Next

Grow your money
The flexible nature of working from home is appealing for new moms and many opt for this when the pitter patter of little feet is on the horizon.

Publish Date: 17/04/2018
Read more
Getting to know Basani Maluleke
A new era started at African Bank on 1 April 2018, the day Basani Maluleke, was appointed as our CEO. Basani follows in the footsteps of Brian Riley, who saw the Bank through curatorship and laid the foundation for the exciting future that lies ahead of us.

Publish Date: 01/04/2018
Read more
Three tips: How to use your credit card wisely
There are more than 8.8 million credit cards in issue, and more than 38 types of credit cards available in South Africa. South Africans have on average one credit card. So. Question is, are you using your credit card wisely?

Publish Date: 22/02/2019
Read more
Dad, here’s how you can be your child’s financial superhero
Fathers are often their children’s first real-life superheroes.Children do as we do, not as we say. So dads, our question to you this month is – are you modelling good financial behaviour?

Publish Date: 04/06/2018
Read more
Saving to educate your children? Get the most out of your money
There is no greater gift that you can give your child than the gift of a secure education.We all want to give our children the very best, however, ensuring that you give your child a quality education costs money.

Publish Date: 09/07/2018
Read more

About African Bank

Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.