ALL resolutions are fantasies that need to be thrown out the window – now is the time to confront reality.
To improve your year, financial services provider DirectAxis shared some expert financial tips with SunMoney.
“Resolutions are challenging, which is probably why they’re often broken,” said Marlies Kappers, head of marketing.
Here is her list of simple ways which anyone can use to improve their finances:
Review your credit report
You’re entitled to one free credit report a year, which you can get from any of the main credit bureaus such as TransUnion, Experian, Compuscan or XDS.
Checking your credit record is also a good way of spotting whether someone has fraudulently used your identity to open accounts or get credit which can ruin your credit profile.
Pay your debt on time
Paying off your debt before starting any other expenses is a good budgeting strategy and gives you a realistic outlook on what you can afford. It also helps to avoid late payments which, if reported to the credit bureaus, is one of the easiest ways to damage your score.
Set a budget when you go shopping
An old wives’ tale tells us “don’t go shopping when you’re hungry”.
Similarly, if you know more or less what all the items on your shopping list will cost, stick to that limit and you’ll be less tempted to buy non-essentials.
Improve your credit score by 20 points
Very few South Africans have perfect credit scores, which means nearly all of us have room for improvement. Twenty points should be an achievable goal for most people. A benefit of bettering your score is that you can get credit at lower interest rates if you need it.
Improve your financial literacy
Many of us have too little financial literacy but there is plenty of information if we’re prepared to look for it.
Get healthy
International studies show that there’s a link between physical, emotional and financial health. In the USA, it is claimed that people who get regular exercise have better credit scores. It is certainly true that regular exercise contributes to stress relief. Keeping healthy should also help to reduce medical costs.
