Improve your financial standing
What’s on your new year's resolutions list? Is it to lose weight, run your first 10km race, start your own business or finally get your financial affairs in order? We understand that while everyone has the best intentions when setting new-year goals, it’s often hard to implement them and make them stick beyond January or February.
If you want to end off the year in a financially sound place, you need to start small as it’s overwhelming and often impractical doing everything at once. For example, set a financial goal each month. Once you’ve ticked off a goal, you can move to the next one. By the end of the year, you’ll likely have reached a more financially secure and savvy position.
Below are six ways to enjoy a financially good year:
- Get life insurance
When you invest in life insurance, you are providing your family with financial security in the event of death. While it might seem like you’re putting money towards something you’ll never personally benefit from, it can protect your family from a big financial burden.
Did you know that Credit Life Insurance is added to all African Bank credit products? It ensures that your debt is covered if anything happens to you. This gives you some peace of mind should you be retrenched, unemployed, or injured and unable to work.
- Draft a will
Writing a will is an important part of your family’s future financial wellness as you are able to stipulate exactly what happens to your assets when you are no longer around. Consider who should get what (of your assets and money), who should be the legal guardian(s) of your minor children should you and your partner pass away, and who should be the executor of your Will (the person who will make sure your assets and money are divided according to your wishes).
Read more: What will happen to your assets when you die?
- Take out a funeral policy
Having a funeral cover can ease your family’s family burden. It ensures that the costs of your funeral will be covered and a specified amount of money will be paid out to your family. Did you know African Bank offers a funeral insurance? For more information on this, plus its 24-hour pay-out, click here.
- Start budgeting
Budgeting can help you understand all your financial habits and take control of your money.
There are several apps that can help you budget. Most banking apps can be linked with your account so that you can see exactly what is happening with your money.
Looking at your accounts closely is also an opportunity to cancel things like subscriptions that aren’t being used. Check if there are any debits coming off your account for mobile phone apps. It’s surprising how a sneaky little R50 can come out of your account without you ever noticing.
DebiCheck is an innovative way for you to electronically confirm your debit orders. This also means that your bank will now know the details of what you’ve agreed to and will not allow your DebiCheck to be processed outside the terms agreed to by you. Read more: DebiCheck puts you in control of your debit orders.
In December, you would have already received the text messages from your banking and insurance institutions informing you of increased banking rates. Now is a good time to shop around for better rates – you could save thousands a year by paying less for similar services and cover.
- Save
You’ll need discipline to save, but the only way to start is by just doing it and doing it now.
The key to changing spending behaviour is creating a goal. Start small. Something as simple as switching off lights to save electricity, waiting a while before buying those shoes, or limiting yourself to one impulse buy a month, could save you thousands of Rands by the end of the year. You could then progress to opening a fixed deposit account. This money can be saved for emergencies, or put towards education policies or increased life cover.
Read more:Our top 3 tips for saving towards your future.
- Start clearing your debt
When you owe money, you'll be paying interest. The longer you take to pay the money back, the less money you'll have in future. Start by paying off your debt with the highest interest rate first. Setting up a debit order to pay off debts is a good start. Every little bit helps, even if it means you can’t buy those stunning shoes just yet!
If you have several creditors, it might be in your best interest to consider an African Bank Consolidation Loan. Read more about how this type of loan can help you better manage your finances: 5 Ways a debt consolidation loan can help