Most of us set our goals too high when we make New Year\u2019s resolutions and so give up because they seem unachievable.<\/p>\n
Caught up in the excitement of a New Year\u2019s Eve party, possibly fuelled by a few glasses of champagne or a need to impress, we commit to running the Comrades, climbing Kilimanjaro or learning the saxophone.<\/p>
Then, the first agonising run round the block, gasping holiday ascent of Table Mountain or cheek-aching, strangled warble brings us crashing back to reality.<\/p>\n
Mostly we do not keep trying.<\/p>
The same is probably true of our financial resolutions.<\/p>\n
Lofty plans to get out of debt, start saving and maybe make some investments soon get shelved after a long, belt-tightening January.<\/p>\n
Soon we find ourselves reverting to old habits, buying things we don\u2019t need and missing repayments when money gets tight.<\/p>\n
Together with her team, Marlies Kappers, chief marketing officer at DirectAxis Financial Services asked industry experts to come up with some simple suggestions that could help struggling South Africans take better control of their finances.<\/p>\n
\u201cWe picked easy-to-do things that should help you feel more in control and will also improve your financial profile.<\/p>\n
\u201cIt\u2019s not a definitive list and not all the ideas will work for everyone, but even choosing one or two should help,\u201d she said.<\/p>\n
\u2022 Take a hard look in the (credit) mirror:<\/strong><\/p>\n Your credit score is the way the financial world sees you, but most South Africans have no idea what their credit score is, much less what to do about it.<\/p>\n You are entitled to one free credit report a year from one of the credit bureaus.<\/p>\n This will tell you your score but doesn\u2019t provide any context or what to do about a bad score.<\/p>\n There are a number of free credit score websites which give you an easy-to-understand credit rating ranging from poor, getting there, good, very good, excellent or perfect.<\/p>\n It shows you what is affecting your credit score, positively or negatively and, importantly, what to do about it.<\/p>\n A better credit score will mean the financial world will see you as being more financially responsible and less of a risk.<\/p>\n This means they\u2019ll be more inclined to do business with you and may even offer you better terms, such as lower interest rates.<\/p>\n \u2022 Be dependable:<\/strong><\/p>\n Paying your debts on time will earn you a good financial reputation, which will be reflected in your credit score.<\/p>\n Regularly checking your credit profile will give you a good idea of what your financial commitments are each month.<\/p>\n You can then assess these and decide which debts are best to reduce first.<\/p>\n Usually these are short-term debts with the highest interest rates.<\/p>\n By paying these off first you may also save yourself some money over the long term.<\/p>\n \u2022 Set a budget:<\/strong><\/p>\n It\u2019s not as hard as it sounds. As with many things that seem daunting, getting started is often the hardest part.<\/p>\n It might be as simple as setting a grocery budget.<\/p>\n Make a list of what you need each week or month, estimate the cost and set that as your budget.<\/p>\n Not only will this give you a realistic idea of just how much you spend on shopping, but it should also reduce the temptation to put unnecessary items in the trolley.<\/p>\n Once you\u2019ve mastered your shopping budget you can try to draw up a household budget.<\/p>\n The easiest way to do this is to draw a line down the centre of a piece of paper.<\/p>\n On the left, list all your income, such as salary, money you may earn from freelance work or property rentals.<\/p>\n On the right, list all your expenses, such as bond repayments, rates, living expenses, transport and cellphone costs.<\/p>\n Try to be as detailed and honest as possible.<\/p>\n You may not get everything right the first month, but over time it should give you a better picture of where you\u2019re spending money and, importantly, where you might be able to cut back and save.<\/p>\n \u2022 Improve your financial knowledge:<\/strong><\/p>\n If you don\u2019t feel you have a good grasp of financial affairs, don\u2019t feel alone, because most of us don\u2019t.<\/p>\n At first glance the financial world can seem complicated and filled with jargon, but if you\u2019re prepared to look for it, there\u2019s plenty of understandable information and explanations available.<\/p>\n There are plenty of other websites, news outlets, radio shows, expert blogs and columns available.<\/p>\n In fact, the sheer volume of information might make it a bit frightening.<\/p>\n Perhaps choose a few subjects you may like to find out more about and start there.<\/p>\n Compare what you find with friends and colleagues.<\/p>\n Over time you\u2019ll find sources that give you the best information that suits your needs.<\/p>\n \u201cDeciding to take better control of your finances isn\u2019t something that should be an unachievable resolution.<\/p>\n \u201cStart with something small and manageable such as your credit profile and go from there,\u201d said Marlies.<\/p>\n <\/p>\n Hav<\/strong>e a story?<\/strong><\/p>\n Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za\u00a0<\/a><\/strong>or Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za<\/a>\u00a0<\/strong>or Kgotsofalang 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<\/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:\u00a0\u00a0Managing your money to gain independence<\/a><\/h4>\n