NOT everyone looks at their finances as often as they should.
Preenay Sathu, channel head for financial advisory at FNB, said: “The end of the year should not be the only time you review your finances – it must be an ongoing process.”
Here are some of his tips on what financial areas you need to work on.
Change your spending habits
Be aware of your spending habits so you can learn to avoid making the same mistakes.
Beat the debt trap
Avoid taking on more debt and instead focus on managing your current debt.
Only borrow when you need to and avoid falling for the temptation of accepting whatever loans are offered to you.
Recheck your investment portfolio
It may be worthwhile to check your portfolio’s performance, but don’t base your judgment on short-term values – they should not be used as a reason to make adjustments that could have a lasting negative impact on the value of your shares. When you do check, do so with a qualified financial adviser.
Check your retirement fund
Check with your financial adviser if the annual premium increase is in place and whether it’s enough to meet your retirement goals.
It is also a good idea to check if you are getting the most tax benefits available to you because of your contributions to retirement funds, pension funds, provident funds and retirement annuities.
Make sure your estate is in order
It is important to remember that an estate, which is organised by a well-planned will with clean, understandable instructions, will be quicker to execute and not likely to be subjected to unwanted delays.
Be realistic with the financial goals that you set for yourself as there are many external forces in the broader economic environment that may have an impact on your finances.
