Beating the post year-end financial blues

There is no time quite like the present to beat the post year-end financial blues. Get your affairs in order in 2015 and to be on the right track here are a couple of ideas you might want to implement.

First and foremost – manage your debts:

  • Get your debt under control for once and for all! This is where your budget need to kick in and where all your debts – both large and small, have to be reflected.
  • For example, short-term debts such as clothing accounts and credit cards will always have a high interest rate.
  • Long-term debts, on the other hand, which will usually include your home will carry a far lower interest rate.
  • It simply makes no sense at all to pay off more on the bond if your credit card debt it growing; it is a far better plan to reduce your short-term debts if you have extra cash to do so.

For extra advice on how to beat the post year-end financial blues, why not visit sites that will offer you some good pointers; websites such as that of the National Credit Regulator offers the kind of guidance we all need when it comes to sorting out financial issues.

Getting to grips with the paper war for once and for all:

  • The best way forward is to be super-organised.
  • The beginning of a new year is the best time to get rid of all those unwanted papers and to categorise all your documents.
  • Take out all those files and get rid of documents that are readily available online.
  • Open up files for everything from invoices for home loans, bank statements, medical aid information, family ID documents and birth certificate.
  • A good idea is to start a box file for every member of the family – each person then gets his or her information filed in a personal file containing documents such as birth certificates to certified copies of ID documents.
  • Make electronic copies of essential documents and store them on two memory sticks which needs to be kept in a safe place.

It is imperative to do your calculations

  • A list of important monthly expenses is imperative – then deduct the total amount from your income.
  • If you have to cut costs cut down on non-essentials.
  • Budgets only work if you are strict and stick to them 100%.
  • Make provisions for one-off emergency expenses.

Saving should come into this picture:

Big amounts are usually out of the question for most of us – especially in January, but starting off small is the answer.

R5 or R10 a day can add up – make use of a debit order every month and soon you won’t notice that you are missing that little bit of cash.

Suze Orman – financial guru, believes that “Every financial worry you want to banish and financial dream you want to achieve comes from taking tiny steps today that put you on a path toward your goals”.

Indeed – there is no time quite like the present to tackle those post year-end financial blues. Some of the information for this article has been taken from the 1 January, 2015 edition of the You Magazine from the “Money Sorted” page.