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Johannesburg – The legal marketing specialist at Liberty, Michelle Dubois Human, said it’s important that people prepared themselves for unforeseen circumstances in the year ahead.
She said with the new year in full force, most South Africans were busy compiling endless lists of the many things needed to get done or urgently needed to buy, but asked if anyone had decided what the financial resolutions should be.
Financial goals
Human said although January was already upon us, one crucial item that should form part of this year’s resolutions was how best to plan one’s money affairs for the year ahead.
One of the easiest ways to do this and ensure the year got off to a hassle free start was to have a discussion with one’s financial advisor.
This person would conduct a financial needs analysis, which would include asking questions about one’s lifestyle, needs and wants and making suitable recommendations on the ways to best utilise one’s money to achieve one’s financial goals for 2014.
Human pointed out that a financial advisor could also review one’s need for cover in accordance with one’s life stage. This would help determine what kind of cover one needed in an eventuality such as disability or critical illness or even death.
Timeline
A financial advisor would also be able to assist one with reviewing beneficiaries and updating one’s will, if necessary.
Human suggested the following to help one become financially savvy:
Identify your goals for the year
This could mean a holiday that you would like to take at the end of the year or buying a new house. Once you have identified your goals and tagged an appropriate timeline, you can start budgeting accordingly;
Insurance check
Review your short term insurance cover and make sure that you are getting the best deal available for your needs and that you are comprehensively insured;
Be clever with your bonus
If you receive a bonus, identify when you will be collecting it and plan what you will be spending it on. Where possible, divide your bonus into three equal portions and allocate a third to each category: save, settle and splurge;
Prioritise debt
Identify which bills are costing you the most i.e. assess the term of the loan as well as the charges, including the interest you are paying and work to pay these off as soon as possible.
If you have a couple of small amounts that can be paid off quickly, pay these off first and use the money that you would have been paying towards these, towards the bigger loans;
Regularly check your bank statements
This will help you to better understand where you’re spending. Once you know this, you can ascertain where you are splurging and cut down on unnecessary spending;
Make use of incentive/rewards programmes
For example check for free parking or make use of specials deals.
She said with the new year in full force, most South Africans were busy compiling endless lists of the many things needed to get done or urgently needed to buy, but asked if anyone had decided what the financial resolutions should be.
Financial goals
Human said although January was already upon us, one crucial item that should form part of this year’s resolutions was how best to plan one’s money affairs for the year ahead.
One of the easiest ways to do this and ensure the year got off to a hassle free start was to have a discussion with one’s financial advisor.
This person would conduct a financial needs analysis, which would include asking questions about one’s lifestyle, needs and wants and making suitable recommendations on the ways to best utilise one’s money to achieve one’s financial goals for 2014.
Human pointed out that a financial advisor could also review one’s need for cover in accordance with one’s life stage. This would help determine what kind of cover one needed in an eventuality such as disability or critical illness or even death.
Timeline
A financial advisor would also be able to assist one with reviewing beneficiaries and updating one’s will, if necessary.
Human suggested the following to help one become financially savvy:
Identify your goals for the year
This could mean a holiday that you would like to take at the end of the year or buying a new house. Once you have identified your goals and tagged an appropriate timeline, you can start budgeting accordingly;
Insurance check
Review your short term insurance cover and make sure that you are getting the best deal available for your needs and that you are comprehensively insured;
Be clever with your bonus
If you receive a bonus, identify when you will be collecting it and plan what you will be spending it on. Where possible, divide your bonus into three equal portions and allocate a third to each category: save, settle and splurge;
Prioritise debt
Identify which bills are costing you the most i.e. assess the term of the loan as well as the charges, including the interest you are paying and work to pay these off as soon as possible.
If you have a couple of small amounts that can be paid off quickly, pay these off first and use the money that you would have been paying towards these, towards the bigger loans;
Regularly check your bank statements
This will help you to better understand where you’re spending. Once you know this, you can ascertain where you are splurging and cut down on unnecessary spending;
Make use of incentive/rewards programmes
For example check for free parking or make use of specials deals.
