Ten financial resolutions to kick start your year.
Ninety One – Investing for a World of Change
As we step into the new year, let’s seize the opportunity to reassess our financial strategies and set the stage for a prosperous future. Regardless of where you are in your financial journey, crafting realistic and impactful resolutions can significantly enhance your financial well-being. We spoke to Thulisile Nkomo, and Kim Lewis, experienced financial advisors with whom we’ve partnered in this series, to come up with ten resolutions that are sure to set you up for a financially empowering year.
1 Create a budget and stick to it
Budgeting is a fundamental aspect of financial success. Start the year by creating a realistic budget that takes into account your income, expenses, and savings goals. Be diligent about tracking your spending and make adjustments as needed. A well-managed budget not only helps you save more but also ensures that you clearly understand where your money is going.
2 Build your emergency fund
Allocate a portion of your end-of-year bonus (if you’re lucky enough to have received one) to establish or reinforce your emergency fund. This financial cushion ensures you won’t resort to costly debt during unforeseen circumstances.
3 Debt prioritisation
Talking about debt – clearly understand your debts, including amounts, interest rates, and repayment terms. Develop a strategy to reduce and eliminate high-interest debts (such as credit card debt) systematically.
4 Plan for annual expenses
Identify upcoming annual expenses such as school fees, car services etc. for the next year and allocate funds accordingly. Adjust your budget to accommodate monthly contributions, ensuring you’re well-prepared for these financial commitments.
5 Bank account health check
Conduct a thorough review of your bank accounts to scrutinise debit orders. Confirm the accuracy of amounts and relevance of debit orders, ensuring your finances are streamlined and efficient.
6 Maximise workplace benefits
Explore the benefits offered by your employer, such as group schemes encompassing death, disability, and retirement benefits. Understand the extent of coverage and how these benefits contribute to your overall financial wellbeing.
7 Optimise medical aid coverage
Evaluate your medical aid plan for the year, paying attention to preventive screening benefits. Utilise these screenings to detect and address potential health issues early, mitigating future financial burdens.
8 Invest in financial education
Dedicate time to enhancing your financial literacy. Attend workshops and webinars or read literature that expands your personal finance knowledge, empowering you to make informed decisions.
9 Set specific savings goals
Define clear savings goals for different aspects of your life, such as a travel fund, education fund, or retirement fund. This targeted approach makes your savings more purposeful and achievable.
10 Review and adjust your investment portfolio
Assess your investment portfolio’s performance and align it with your financial goals. Meet with your financial advisor to ensure your investments align with your risk tolerance and objectives.
By incorporating these strategies into your financial plan, you’ll be well equipped to make 2025 a year of financial growth, resilience, and fulfillment.
Important information All information provided is product related and is not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information without appropriate professional advice after a thorough examination of a particular situation. This is not a recommendation to buy, sell or hold any particular security. Collective investment scheme funds are generally medium to long term investments and the manager, Ninety One Fund Managers SA (RF) (Pty) Ltd, gives no guarantee with respect to the capital or the return of the fund. Past performance is not necessarily a guide to future performance. The value of participatory interests (units) may go down as well as up. Funds are traded at ruling prices and can engage in borrowing and scrip lending. The fund may borrow up to 10% of its market value to bridge insufficient liquidity. A schedule of charges, fees and advisor fees is available on request from the manager which is registered under the Collective Investment Schemes Control Act. Additional advisor fees may be paid and if so, are subject to the relevant FAIS disclosure requirements. Performance shown is that of the fund and individual investor performance may differ as a result of initial fees, actual investment date, date of any subsequent reinvestment and any dividend withholding tax. There are different fee classes of units on the fund and the information presented is for the most expensive class. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Where the fund invests in the units of foreign collective investment schemes, these may levy additional charges which are included in the relevant Total Expense Ratio (TER). A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The ratio does not include transaction costs. The current TER cannot be regarded as an indication of the future TERs. Additional information on the funds may be obtained, free of charge, at www.ninetyone.com. The Manager, PO Box 1655, Cape Town, 8000, Tel: 0860 500 100. The scheme trustee is FirstRand Bank Limited, PO Box 7713, Johannesburg, 2000, Tel: (011) 282 1808. A feeder fund is a fund that, apart from assets in liquid form, consists solely of units in a single fund of a collective investment scheme which levies its own charges which could then result in a higher fee structure for the feeder fund. The fund is a sub-fund in the Ninety One Global Strategy Fund, 49 Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg, and is approved under the Collective Investment Schemes Control Act. Ninety One Investment Platform (Pty) Ltd and Ninety One SA (Pty) Ltd are authorised financial services providers.