Improve Your Finances in 2020 with these Tips
With the new year in full swing, its time to improve your financial health by aiming to save or invest more and cut back on unnecessary expenses.
Here are some great tips to help you to improve your finances in 2020.
Have the End of the Year in Mind at the Start
Start the year by deciding what your personal, physical and financial goals are for 2020. Break down the end goal into smaller more manageable goals like daily, weekly or monthly goals.
There are plenty of resources out there that give advice, tips and tricks on finances and investing, so pick up a book aimed at South Africans and start reading, so you can start to understand your money and what to do with it so you can make smart investment choices.
Have the Money Talk
Financial problems can affect you and your loved ones as it creates stress and anxiety. You need to sit down with your family and discuss the financial situation, your stress and your financial goals so that your family is on-board with the journey to financial freedom.
Have The Plan for the Goal
You should have a budget in place to serve as the plan on how you are going to spend and save your money. A budget will also help you in tracking your expenses and how much you have to save, what you have for expenses and flexible spending.
Review Your Credit Score
You can check your credit score online for free, which will show how creditworthy you are and you can find ways to improve your credit score. A good credit score will help you to get lower interest rates on loans.
Check Your Insurance
With another year done and dusted, you and your assets are a little older. Take a look at your short term insurance to ensure that you are not overpaying based on last year’s asset values and adjust your risk cover policies to ensure that you are covered correctly for any surprises that life could throw at you.
Get Yourself a Reward
There are plenty of reward programmes that offer savings on purchases, free goodies for positive behaviours and points that can be redeemed. You just need to make sure that the price you are paying for these reward programmes does not exceed the benefits.
Review Your Fees
Take a look at your banking and investment fees and makes sure you are getting the most value. You can also compare fees from other banks to check if you can save a little on these.
Speak to Your Financial Planner
Have a meeting with your financial planner to go over your investments and update them on anything that has changed in your life like marriage, a new child or a death of a spouse to make sure that your current investment plans are still in line with your financial goals.
Make Use of Your Tax Free Savings Account
You will have until the end of February to invest up to R33 000 into your tax free savings account for the current tax year. Make sure you don’t miss out on this otherwise you will miss the opportunity to use this investment vehicle in this tax year.
Make Saving a Habit
Make the year 2020 where you go from a spender to a saver. You just need to spend less and save more. You should put money away at the beginning of the month instead of at the end.
Save with Online Shopping
Use the internet to shop around for the lowest prices, which will help you to save money as well as time.
Go Over Your Investments
According to personal economic changes, you should review and rebalance your investments to ensure that your investments are still suitable for your investor risk profile and goals.
Become Debt-Free in 2020
You need to determine your total debt and come up with a plan as to how you will be paying it off. A good idea is to start with the debt that has the highest interest rate first and focus on eliminating this debt.
Update your Will
If you don’t have a will then you need to create one. If you do have a will then you need to review it and make sure it contains your current wishes. You will also need to update the beneficiaries on retirement funds and life policies as these are not included in your will.
Increase Your Personal Value
Learning a new skill can increase your value and save some money. When you acquire a new skill you can increase your potential earning power, which will help you to save money.
Go by the Six Month Rule
We acquire a lot of items in our lives and we all have electronics, furniture and even clothes we no longer use. The rule here is if you haven’t used an item in the last 6 months, then sell it. You might be surprised at what people will pay for preloved items.
Save More by Spending Less
Go through your bank statement and eliminate unnecessary expenses for stuff that you don’t use or need. Look at subscriptions and see what you can cancel, skip those takeaways and so on as these will help you to save money.
Find a New Income Stream
Generate a second income by doing something that you love. If you are crafty then sell your items, if you love to bake then sell your delicious goodies and so on. Having a side hustle is a great way to increase your income.
Fill Your Piggy Bank
Collect your loose change throughout the year in a piggy bank. At the end of the year count up your savings and reward yourself.
Start 2020 on the right financial foot this year with some easy to follow money tips that will help you to save more and get the most out of your money.