NOW is the time to make decisions that will shape your year and long-term financial goals.
Ester Ochse, channel head at FNB Financial Advisory, told SunMoney that now was the right time to fix what you did wrong during the festive season.
“The financial moves you make now will determine whether you thrive financially or merely survive during the course of this year,” she said.
Below are Ochse’s five important financial moves that anyone who wants to achieve financial freedom this year has to make:
Your financial commitments
While some people may have financial resolutions, many tend to look at what they want to achieve without first taking stock of their commitments. The best approach is to first review your financial commitments before planning the next steps.
Reduce your debt
While debt is not bad, you should not use it to finance your lifestyle. A home loan is regarded as good debt, but loans to cover day-to-day expenses, such as groceries and transport, show that you may be in financial trouble or simply unable to manage your finances.
Cut your spending
Spend when it’s necessary and not when you feel like it. This will allow you to manage your finances well and be in a position to invest for long-term goals.
Invest or save
Investing or saving is hardly fashionable but it’s important to your financial independence. Investing is considered long-term and saving short-term. People should take advantage of the savings accounts or investing platforms that are specific to their financial goals.
Speak to a financial adviser
Professional financial advice is important to people who are serious about their financial future. Look for an adviser who uses goal-based financial planning and who does NOT focus on selling “products”, to help you shape a more defined financial future.
