Do a spring clean to get financial situation into better shape
Season time to resist spending temptation
As I write this article, South Africa is faced with many challenges; the latest drawback being the announcement that the economyentered into a technical recession.
This is where an economy suffers two consecutive quarters of negative economic performance, which implies that the economic activity of a country is declining.
A shrinking economy puts all citizens underpressure onmany fronts, especially financially.
In SA’s case it’s particularly serious because the country needs strong economic growth to fight unemployment, which currently stands at around 27%.
The month of September brings an opportunity for most of us to “spring clean” and put our financial situation into better shape. Normally, when spring hits, wemomentarily lose our money management mind and our focus is on spending.
At this time of the year, your annual review should focus on achieving financial goals. This is thetime to sit downwith your financial planner for a holistic discussion on your financial action plan. Questions to ask your planner may include:
Am I on track to reach my goals?
Are any changes necessary? Why, or why not?
■■Do we have expectations?
Is there anything I need to know about investment to assist me inmaking changes to my financial plan?
How often should we meet and who will set up meetings?
Having a conversation with your planner helps to cement the trust needed for a healthy working relationship.
However, you need to be proactive and be accountable for your own financial success. A financial introspectionis necessary in September, to keep you ontrack andavoidpotential financial traps as we approach the “silly” festive season.
Below are self-help tips:
– knowing your debt is the first step at chipping away at it.
■■■this will make you aware of any potential risks and opportunities that you need to be aware of.
– ask yourself if you need to have more than one credit card.
the saferule for savings is to have at least three months’ worth of cash for emergencies.
– revise your budget, recognise increases in petrol and food prices.
– review and update your will.
Spring is a time of renewal, and the perfect chance to ditch bad habits fornew ones.