As the year winds down, now is the perfect time to take stock of your finances and prepare for a successful 2025. JustMoney.co.za, a platform that helps South Africans make good money choices, has compiled a checklist to help you avoid festive season pitfalls and make smart money decisions.
“Planning is essential to close out the year on a high note and lay the groundwork for a financially healthy new year,” says Sarah Nicholson, operations manager at JustMoney. “Taking these steps now will save you stress and money later.”
The following tips can make a significant difference to your finances, says Nicholson.
- Review your medical aid plan. Medical aid providers allow members to change their plans at the end of each year, effective on 1 January of the new year. Ensure your plan still meets your needs. Double-check that dependents are adequately covered and that you’ve optimised your annual benefits. If you consider switching to a new provider, be aware of possible waiting periods or exclusions.
- Make the most of your bonus. If you’re lucky enough to receive a year-end bonus, allocate it wisely. Consider paying off debt, adding to your emergency fund, or investing in goals such as tertiary education or property ownership.
- Audit subscriptions and contracts. Review recurring subscriptions such as gym memberships and streaming services, and cancel those you no longer use. Compare quotes for insurance renewals to ensure you get the best deal.
- Check your investments. Consult a financial adviser to ensure your investments still align with your risk tolerance and goals. Make adjustments if needed, but keep in mind that successful investing is generally about time in the market, not timing.
- Plan for holiday spending. Set a realistic budget for gifts, travel, and entertainment. Take advantage of discounts and loyalty points, and consider DIY gifts to save even more.
- Prepare for school expenses. Start budgeting now for school fees, uniforms, and supplies for the new academic year. Consider setting up a long-term education savings plan.
- Check your credit report. Your credit score impacts your ability to secure loans, get favourable interest rates, and buy property. Assess how your financial habits, such as making timely payments or managing debt, have affected your credit score over the past year. Also check your report for discrepancies or signs of fraud.
- Donate wisely. Supporting a registered, well-governed nonprofit organisation will help those in need and can also offer tax benefits.
- Prepare for tax season. Start gathering documents such as medical expense receipts and proof of retirement contributions. Making an additional retirement annuity payment before 28 February can reduce your tax liability.
- Tackle debt strategically. Prioritise paying off high-interest debts, such as credit cards and personal loans. If you’re struggling, explore debt consolidation options or consult a financial planner or coach.
Finally, Nicholson advises checking on your progress and setting goals for 2025.
“By reflecting on the past year, you can identify what worked well and where there’s room to improve. This process encourages a more thoughtful approach to managing your finances, enabling you to align your spending, saving, and investing habits with your long-term objectives,” she says. “Setting and achieving financial goals, whether big or small, will give you a sense of accomplishment and help keep you motivated to achieve financial security and independence.”
JustMoney.co.za is a trusted voice within the personal finance sector. The JustMoney platform offers articles, money management tools, and various financial solutions and services. More than 700,000 South Africans are registered on the free credit score platform to stay informed and make good money choices. Register here.