As 2024 winds down, now is the perfect time to take stock of your finances and prepare for the new year.
Sarah Nicholson, operations manager, JustMoney said: "Planning is essential to close out the year on a high note and lay the groundwork for a financially healthy new year. Taking these steps now will save you stress and money later."
JustMoney has compiled a checklist to help you avoid festive season pitfalls and make smart money decisions.
Review your medical aid plan
Medical aid schemes allow members to change their medical aid plans at the end of each year, effective on January 1 of the new year.
You need to ensure your plan still meets your needs. It is also advisable to double-check that your dependents are adequately covered and that you have optimised your annual benefits.
If you are thinking about switching to a new medical aid provider, be aware of the possible waiting periods or exclusions.
Make the most of your bonus
If you are lucky enough to receive a bonus at the end of the year, then you need to use it wisely. You should consider using the money to pay off debt, adding to your emergency fund, or investing in goals such as tertiary education or property ownership.
Check your subscriptions and contracts
This is the time to review recurring subscriptions, such as gym memberships and streaming services. Cancel the subscriptions that you no longer use and compare quotes for insurance renewals to ensure you get the best deal.
Check your investments
Speak with your financial adviser to make sure that your investments still align with your risk tolerance and goals. You can make adjustments if needed, but keep in mind that successful investing is generally about time in the market and not timing.
Plan for holiday spending
Draft a realistic budget for gifts, travel, and entertainment. To save even more, take advantage of discounts and loyalty points, and consider DIY gifts.
Prepare for school expenses
Start budgeting now for school-related expenses like school fees, uniforms, and supplies for the new academic year. You should also consider setting up a long-term education savings plan.
Check your credit report
Your credit score can impact your ability to secure loans, get favourable interest rates, and buy property.
Review how your financial habits including making timely payments or managing debt, have impacted your credit score in 2024. Check your credit report for discrepancies or signs of fraud.
Donate wisely
Supporting a registered, well-governed nonprofit organisation will help those in need and can also offer you tax benefits.
Prepare for tax season
Start collecting documents like medical expense receipts or proof of retirement contributions. Making an extra retirement annuity payment before February 28 can lower your tax liability.
Tackle debt strategically
Make paying off high-interest debts, such as credit cards and personal loans a priority. If you are struggling, have a look at debt consolidation options or speak with a financial planner or coach.
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