Get into 2019 gear

While February 28 – the end of the tax year – is a key date, some people are still recovering from poor money decisions taken in December.

Although this means that many South Africans won’t be able to take advantage of the tax benefits available to them for the 2018/19 tax year, it’s important to remember that it’s never too late to learn good habits.

The 2018 Old Mutual Savings & Investment Monitor found that 38% of households earning R14 000 to R19 999 per month would not be able to deal with an emergency of R10 000.

Here are five steps you can take right now to build your financial wellbeing:

Set smart money goals

Be specific about what you want to achieve. Your goals may include clearing credit or store debt, saving enough for an emergency fund, or contributing monthly toward your retirement.

Get a plan in place

Ask for help. A financial advisor will partner with you to co-create a roadmap that eliminates unrealistic pressures.

Find the right solutions

Maximise your tax benefits. Tax-free savings accounts (TFSA) and retirement annuities (RA) should be on everyone’s financial radar.

Pay yourself first

Many South Africans can expect a yearly salary increase this year. Make sure you pay yourself first by allocating a portion of your increase toward your financial goals, whether it’s to top-up your TFSA or maximise your RA..

Lizl Budhram is head of advice at Old Mutual Personal Finance