By Mariné van Brakel
Spring is the season for new beginnings and fresh perspectives. However, it’s not just your home that needs a spring clean. It’s also the perfect time to reassess your financial health, clear out the clutter and to get all your financial affairs in order before the year ends.
Have you got a will?
Apart from being Spring, September is also National Wills Month. The most recent statistics by the Master of the High Court of South Africa found that over 80% of South Africans pass away without a will. Doing this could result in legal disputes after your passing and leaving your loved ones behind without clarity on how to distribute your assets.
Now is the time to get your will drafted or make sure your current one is still up to date. Explore online resources for reputable law firms or financial services companies that provide free will-drafting services.
Get your finances in shape this Spring
Research conducted by Sanlam found that over 80% of South Africans experience stress when managing their personal finances. As little as 35% of South Africans have faith in their abilities to manage their money, with just 17% feeling content about their current financial situation.
Many South Africans relate to needing a financial spring clean, not just to make their money work harder but to build the confidence to make smarter financial choices. The best part? It doesn’t have to be overwhelming. By focusing on a few key aspects of your spending and money management, you can refresh your financial situation and set yourself up for a more secure future and less unnecessary stress.
Here are five areas to check if your financial health needs to be spring cleaned:
Start with the basics: your budget
No matter where you are in your financial journey, a solid budget is the foundation of smart money management. That’s why your first step in a financial spring clean should be reviewing your monthly budget.
Start by reflecting on the first eight months of the year: where has your money gone, have you saved regularly, are you living within your means, and has your income changed? Armed with this insight, you’ll be able to make informed choices — whether it’s cutting unnecessary expenses, automating savings, or adjusting your financial goals to be more realistic and achievable.
How’s your credit health?
When last have you checked your credit score? Now is the perfect opportunity to do just that. Keeping track of your credit score will help you ensure that you’re servicing your debt diligently, using credit responsibly, and catching any errors early on.
All you need is a valid South African ID number, and requesting the report won’t affect your credit rating in any negative way.
Refresh your fraud safeguards
Too many South Africans are falling prey to the tactics used by financial fraudsters to rob people of their hard-earned money, so freshening up your knowledge on how to avoid fraudulent scams is important. Remember to always do these three important checks:
1. The domain used by any company sending you an email should be linked to the company rather than from Gmail, Yahoo or Outlook.
2. The number used by anyone contacting you with an offer should be linked to a business call centre, rather than someone’s personal line.
3. The language used should be free of spelling errors and bad grammar.
Time to consolidate
Next up is some decluttering, and the best way to do that is by consolidating your accounts. If you have multiple credit accounts (for clothing, groceries, luxury items or electronics for example), you could save on account and transaction fees by getting an account that provides access to many different outlets using one credit facility.
In addition, gain a clear understanding of the fees associated with your accounts and learn how to avoid unnecessary charges, such as late payment penalties or collections fees, by ensuring your instalments are paid on time.
Don’t forget financial literacy
The final pit stop is to brush up on your financial literacy. Don’t rely on your spouse, partner, family member or the aunty next door for the information you need to make good financial decisions. Empower yourself by investing in your financial education. You could also enrol in a free financial management course, attend a workshop, reach out to an advisor or make a point of conducting online research on the topics you need to learn more about. When it comes to money matters, knowledge really is power.
* Van Brakel is the deputy CEO at RCS.
PERSONAL FINANCE