As we enter into the new year of 2025, it is time for South Africans to rethink how they handle their money.
Wikus Olivier, managing director, CreditSmart Financial Services said: "Let’s focus on simplicity, clarity, and some go-to steps to achieve financial health and peace of mind this year. Small, consistent actions can help build a strong foundation for long-term financial success."
Here's how you can kick off 2025 feeling confident and financially empowered:
Start small, save big
Building your savings does not have to be overwhelming, you can commit to saving just a little every week or month whether it’s R50 or R500, but you have to be consistent.
You can use tools like automatic transfers to a dedicated savings account to make the process of saving much easier.
By the end of 2025, these small contributions will grow into a tidy sum that can be used to cover unexpected expenses or fund a future goal.
Declutter your spending
Review your expenses and identify what you truly value. Are there subscriptions or habits that are draining your wallet without giving you real joy?
Cancel unnecessary services, skip a few takeout meals, and redirect your luxury funds towards your emergency fund or that much-needed year-end holiday.
Keep tabs on your credit
Your credit health plays a significant role in your financial well-being therefore you make it a habit to check your credit report at least once a year to spot any errors or suspicious activity.
Paying your accounts on time and keeping your debt-to-income ratio (the financial metric that compares your monthly debt payments to your income amount before deductions) less than 30% are easy ways to boost your credit score which can open doors to better financial opportunities.
Celebrate your progress
Set small milestones throughout the year and reward yourself when you reach them.
Whether saving up for your first R1,000 or paying off a credit card, celebrating each win can help you stay motivated and keep on the right track with your financials.
IOL Business