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If you have decided that this is the year to get your spending under control, try this month-by-month plan so that your finances and admin are all up to date by the end of the year, writes Maya Fisher-French.
JANUARY: UPDATE YOUR BUDGET AND PLAN FOR EXPENSES
Write up a budget.
Don’t just guess what you spend – pull out your statements and keep track of your day-to-day spending so that you get a handle on where your money is going.
Plan for major expenses such as school tours, a major car service or holidays. There may be life events you need to plan for like a wedding or the birth of a child.
You can start saving towards these by opening a savings account linked to your transactional account, making it easy to transfer money each month.
FEBRUARY: SORT OUT YOUR TAXES
February 28 marks the end of the tax year, so it is a good time to make sure you are optimising your tax deductions.
You can top up your retirement annuity and contribute to a tax-free savings account.
Make a note of your car mileage at the end of February if you use your car for business travel.
Find out what expenses you need to keep track of and start getting your supporting documents for tax return purposes.
MARCH: REVIEW YOUR INSURANCE
Find out if you are insured for the correct values on your car and household contents.
Shop around and compare quotations from other insurers, but make sure you know what cover each insurer offers for the premiums you pay.
You may find one insurer offers you cheaper premiums, but will charge you a much higher excess when you make a claim.
This can save you money each month, but make sure you have the excess tucked away in an emergency account.
You also need to review your life assurance needs if you have had a child, got married, changed jobs, been retrenched or received a raise.
APRIL: REVIEW YOUR WILL
If you don’t have a will, now is the time to write one. If you do have one, check if it needs updating.
Any life changes such as a marriage, divorce or children will require you to update your will.
MAY: REVIEW YOUR BUDGET AND CREATE A DEBT REPAYMENT PLAN
Now is a good time to review the budget you set at the beginning of the year – are you on track or overspending?
Review what changes you need to make and see if there are areas of overspending you can cut back on to give you a little extra cash.
If you have short-term debt, use this money to create a debt repayment plan to accelerate those payments and settle your debts sooner.
JUNE: MEDICAL CHECK
Check how much money is still available in your day-to-day medical aid savings account and plan your regular doctor visits such as dental and optometrist check-ups.
If you have a self-funding gap, find out from your medical aid provider how much you will need to spend before you get past the threshold so that your medical aid will cover your costs.
JULY: FOCUS ON SAVINGS DURING SAVINGS MONTH
Sometimes the hardest part of saving is opening the account.
If you do not have a tax-free savings account, commit to opening one now or sign up for a bank account or app that creates automatic savings, such as Swipe and Save.
Review the fees on your different savings investments.
Check that fees are not costing you more than they should by comparing different investment vehicles.
Also make sure your investment meets your needs.
If your long-term savings are in cash, you need to look at higher growth investment options.
AUGUST: WOMEN TAKE CONTROL
If you are in a relationship, it is important both partners are aware of their finances.
Don’t leave everything to your husband or male partner – far too many women still defer investment decisions to the men in their lives.
Get your own financial adviser.
SEPTEMBER: SPRING CLEAN
Clean your clutter and get your admin filed and sorted.
Draw up a list of all your policies, accounts and investments so they are easily available.
Also make a note when important documents are due for renewal, such as your driver’s licence.
OCTOBER: REVIEW YOUR MEDICAL SCHEME
Medical scheme increases are released this month.
Find out what the increase will be for your particular benefit option and then assess whether you want to change options or even medical schemes.
Compare your needs with the benefits you can receive and the premium you are expected to pay.
NOVEMBER: DON’T BLOW THE WINDFALL
This is the time to plan how you are going to spend your December bonus or tax refund – before you get it.
You could make a lump sum payment into your home loan so that you can pay it off sooner and save on interest.
Or you could put your bonus towards annual costs.
Whatever you do, make sure you have a plan so that you don’t blow the money in a frenzy of spending.
DECEMBER: BE PREPARED
Don’t forget that you still have to pay debit orders in December and account for them before you spend any money.
Remember, it is a long way to your January paycheque.
After all the parties are over and the visitors have left, you still need to buy groceries and deal with all your other regular monthly expenses such as electricity.
