Vernon WesselsThe early part of the year typically begins with a go-getter attitude. Your bank balance and savings seem as bulletproof as your resolution to go to the gym daily, eat healthily and spend less time doom-scrolling on your phone.
You’re also feeling good about yourself, or the prospect of new opportunities. If you didn’t end up at the beach, the bush or the mountains, you may have spent December cleaning out your cupboard, your shed, your storeroom or what we like to refer to as “the room of shame”, where everything just gets dumped, and the door shut.
But, for many of us, self-discipline is a hard ask. Soon, the expenditure side of our bank accounts is as bloated as the belly that builds up again once the inexplicably long month of dry Janu-worry ends. The booze is flowing again, and dining out is no longer a boerewors roll on the stoep.
That gym membership is now a regular debit order, and the card is an abandoned relic.
To make matters worse, annual price increases start kicking in. School fees, private medical cover (both usually rising well above inflation), broadband, streaming services and insurance all climb higher. That pay rise you celebrated at the start of the year? It suddenly feels like a drop in the ocean. The trap is set.
Soon, your finances – like your once-organised wardrobe – run out of space. If you’re not careful, your bank account could become its own “room of shame”, where the gap between income and expenses is too tight to manage financial shocks.
And with interest rates unlikely to drop in 2025 as quickly and as much as many of us hoped, it’s vital to maintain a healthy buffer between what you earn and what you spend.
Simple steps to take control of your finances
Start with a budget
Forecast expenses for the year, such as car servicing, tyre replacement or uncovered medical costs.
Categorise spending: fixed costs, variable expenses and non-essentials.
Top up your emergency fund
Aim to save three to six months’ worth of essential expenses to protect yourself against unforeseen financial shocks (you should’ve used your bonus to add to this and need to set aside cash each month on top of your normal savings for this).
Be honest about gym
If you’re not truly a gym person, avoid the fees. Start with sustainable, free activities like walking or following YouTube fitness routines at home. If you do join a gym, go with a friend to stay accountable.
Invest in your future
Treat savings like a non-negotiable expense and set aside a portion to be deducted every month. Use a tax-free savings account, where you can contribute up to R36,000 a year without surrendering a cent to the government.
Try to repay debt as soon as possible.
Look for any side gigs that can add to your income and, if you can, always add to your knowledge by studying or taking up a course.
Get serious about cash-back and reward programmes
Carefully assess which one gives you the best deal on your fuel or grocery shopping spend and milk it. Every cent counts. And if you’re not using it, cancel it to avoid any expenses that might come with it.
Unsubscribe from temptation
Retail emails and “special offers” encourage impulse buying. Unsubscribe and, if you’re bored, take a walk, visit a park or read a book – anything to stay away from a mall and the temptation of retail therapy.
Sell your clutter
Decluttering your home can declutter your mind and your finances. Sell unused items online and enjoy the double win of extra cash and a tidier space.
Renegotiate insurance
If your premiums have increased, shop around. Contact reputable brokers and ensure you compare like-for-like coverage before switching. Watch your excess payments vs premiums.
Audit your subscriptions
Review all your subscriptions. Are you really using that second music streaming service or bodybuilding app? Four movie and streaming services? Cancel any dormant ones.
Reassess internet and mobile plans
A 100Mbps broadband package is sufficient for most households, saving money compared to pricier options. Check your mobile contract too – you may be paying for unused data or minutes.
Shift your mindset
The start of a new year often brings optimism, but it can also lead to poor decisions driven by overconfidence. Small, recurring expenses – subscriptions, impulse buys or unnecessary upgrades (that new phone) – quickly add up and shrink the gap between income and expenses.
For some, the desire for change leads to spending as a substitute for unfulfilled goals. This perpetuates financial stress. Instead, focus on small, achievable wins to build momentum. Tidying up your spending habits can help you regain control and set the tone for a financially sound year.
Taking charge of your finances doesn’t have to mean drastic measures. A few mindful adjustments now can set you up for a year that’s financially secure, emotionally balanced, and perhaps even a little lighter – both on your wallet and your waistline.
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