Many step in the new year having made resolutions to improve their financial circumstances, but it takes more than just good intentions to make these stick.
Whatever goals you've set - growing savings and investments, settling debt, or securing long-term financial stability - will require discipline, consistency and commitment to be achieved.
Ester Ochse, Product Head at FNB Integrated Advice, says that sustainable financial habits are key to successful financial planning.
“Much like nurturing a garden, good financial habits require regular care and attention to grow. Consistency, even with small actions, leads to significant progress over time. Therefore, it’s really important to have a focus period set aside in January or February to kick-start the year with a strong financial future in mind.”
Tips to stay on track with financial goals this year:
Start with a clear financial plan
Begin with a clear roadmap, including specific, measurable goals, broken down into smaller actionable steps. If you want to save for a specific purpose, calculate the exact amount needed and then decide on an amount you can realistically save monthly for a set period. Various online tools are available to track your progress, make changes, and stay motivated as you work towards achieving your goal.
Review and adjust your budget regularly
No financial situation is static, so your budget should be dynamic as well. Unforeseen circumstances will affect your finances, forcing you to adapt. You should therefore periodically review and adjust your budget, taking into account your income, expenses and savings.
Be smart and intentional about managing your debt
Credit can be your friend if used responsibly, making it possible to buy the things you need and build up your financial reputation. But it's a double-edged sword, and you should only borrow what you can pay back. Not sticking to the agreed repayment agreement can result in an unhealthy credit record and make it difficult to borrow money when you need it in the future.
Automate your savings and investments
Instead of relying on memory to save each month, take advantage of tech and automate your savings and investments. Automatic transfers to your dedicated savings or investment accounts ensure that your goals are met before the temptation to spend spare money sets in.
Use rewards programmes to boost your financial goals
Taking advantage of rewards programmes can help you speed up reaching your financial goals. When you've earned enough rewards to pay for purchases with points instead of cash, use the savings to provide some relief to your budget, or you can add to debt repayments or savings.
“The journey to financial security is one that requires patience, dedication and small consistent actions that add up over time. It’s important for you to stay focused in order to achieve your financial goals,” says Ochse.