It\u2019s the time of year where you have begun putting thicker duvets on your beds, dusting off the heater and perhaps have even gone for a flu shot.<\/p>\n
It may also be a good time for a financial health check.<\/p>
\u201cMany of us consider our financial position at the beginning of the year and resolve to try and pay off debt, save a little more and perhaps invest some money, but six months later we have forgotten our good intentions,\u201d said Marlies Kappers, head of marketing at financial services provider DirectAxis.<\/p>\n
She suggests that early in the year when you\u2019re still enthused and committed, is the best time to pencil in a date for a financial review.<\/p>
\u201cEven if you haven\u2019t planned a regular financial assessment, it\u2019s a sensible habit and halfway through the year is as good a time as any,\u201d Kappers said.<\/p>\n
Here are three things to consider when you do:<\/p>\n
1. Assess your financial goals<\/strong><\/p>\n When considering your goals, be practical and realistic.<\/p>\n If you\u2019ve been a couch potato all your life you wouldn\u2019t start a fitness programme by entering an Ironman \u2013 instead, you might begin running, cycling and swimming smaller distances and build up your fitness levels in each discipline.<\/p>\n The same applies to your financial health.<\/p>\n Setting too many goals can be as bad as one huge unrealistic goal, so rather set two or three achievable goals.<\/p>\n This makes it easier to stay focused and keep track of progress.<\/p>\n Reaching attainable targets will give you a sense of achievement and will encourage you to continue improving your financial well-being, which is better than giving up because you\u2019ve tried to do too many things at once or been too ambitious.<\/p>\n 2. Check your credit score<\/strong><\/p>\n Everybody from banks to retailers, landlords to car dealers decide about your financial dependability based on the three figures that comprise your credit score.<\/p>\n Think of it as the printout from an ECG, the machine used to check your heart rate, it provides an indication of how consistent and reliable you are financially.<\/p>\n By law, you\u2019re entitled to one free credit report a year from any of the credit bureaus.<\/p>\n The problem for many people is that, like the readout from an ECG, unless you\u2019re an expert these can be difficult to understand and usually don\u2019t give you much information on what you can do to improve a poor score.<\/p>\n Fortunately, there are alternatives.<\/p>\n Online financial tools enable you to get a free credit rating as often as you like – what\u2019s more, they also provide information about how the rating is made up, how you can improve a poor rating and also make it possible for you to track your progress over time.<\/p>\n 3. Review your budget<\/strong><\/p>\n It\u2019s something even the finance minister does \u2013 he calls it the mid-term budget review.<\/p>\n The reason for reviewing your budget is that some of the assumptions you made at the beginning of the year may no longer be true.<\/p>\n For example, VAT has gone up and the cost of fuel has increased and this may mean you\u2019re spending more than you anticipated and might need to try and cut back further in order to reach your other financial goals.<\/p>\n Think again of the triathlon analogy.<\/p>\n Halfway through your training programme, you may have reached your running and cycling targets, but are struggling with the swimming.<\/p>\n You can either focus on running and cycling and hope that better times in these will make up for the time you spend in the water, or you can get some expert help to improve your swimming times.<\/p>\n Similarly, when you review your budget you may find that you\u2019re on track with paying off debt but aren\u2019t saving as much as you\u2019d intended.<\/p>\n You might look to see where else you can save on monthly expenditure to make up the shortfall, or speak to a financial advisor.<\/p>\n \u201cWhether you\u2019re planning the equivalent of a financial Ironman or just want to get fit and lose a few kilograms, it\u2019s helpful to set some goals and regularly assess your progress.<\/p>\n \u201cIt increases the chances that you\u2019ll stick to your plan and ultimately achieve your goals,\u201d said Kappers.<\/p>\n Have a story?<\/strong><\/p>\n Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za<\/a><\/strong>or Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za<\/a>\u00a0<\/strong>or\u00a0Kgotsofalang Mashilo (journalist)\u00a0kgotsofalangm@caxton.co.za<\/strong><\/a><\/p>\n Remember to visit the Germiston City News on the following social media platforms:<\/p>\n Facebook<\/a><\/strong><\/p>\n Twitter<\/a><\/strong><\/p>\n Instagram<\/a><\/strong><\/p>\n YouTube\u00a0<\/a><\/strong><\/p>\n Or add the GCN on\u00a0<\/b><\/span>WhatsApp 079 406 1181<\/strong>\u00a0<\/span>or\u00a0BBM (BBM Pin: 7F102137)<\/strong>\u00a0<\/b><\/span>today, to get all the latest news.<\/p>\n Catch-up on more local news with our sister newspapers\u00a0<\/span>Bedfordview Edenvale News<\/a><\/strong>,\u00a0<\/span>Alberton Record<\/a><\/strong>\u00a0and\u00a0<\/span>Kempton Express<\/a><\/strong>.<\/p>\nALSO READ:\u00a0Get fuel efficient and maintain your car for less, says MIWA<\/a><\/h4>\n