For COVID-19 updates, visit the official government website for free.

Vodacom Now!

Smart financial planning means making provision for your retirement – while enjoying life to the full. Here’s how to keep your finances on track in 2020.

Take stock

The first step in growing your wealth is getting to grips with your current financial status. Understanding your financial health enables you to make considered decisions about the future of your money. Your net worth is the difference between all the assets you've accumulated and your current debts.

Clarify your goals

Knowing what you want to achieve is the next step. Once you have a clear idea of what you’re aiming for – whether it’s to buy your first home, get out of debt or save for your children’s education – it will be easier to stay focused. A financial vision board is a collection of images, words and numbers that you create for yourself. It is a useful tool to help you clarify, concentrate and maintain focus on your goals. 

Budget wisely

One of the best ways of achieving your financial goals is to ensure you spend less than you earn. A detailed budget might show that you’re spending R500 a month on takeaway coffee and R350 a month on an app you aren’t even using. Once you know exactly where your money is going, you can work out how best to trim unnecessary expenses and luxuries. The general rule is to devote 20% to savings, 50% to necessities (fixed expenses) and 30% to discretionary items. Take a look at these apps that could make financial planning a breeze.

Audit your insurance policies

While you don’t want to be under-insured, it also makes no sense to be over-insured as you will be paying high premiums for no reason. Choose a disability policy that provides enough coverage to enable you to enjoy your current lifestyle if you suddenly fall ill or have an accident and can no longer work. In addition, if you have people who are financially dependent on you, ensure you have adequate life insurance so they are taken care of after you die. Click here to find out more about Vodacom's insurance offerings, which includes life cover and family funeral cover.

Consult a financial adviser

Jeanette Marais, former director of distribution and client service at Allan Gray, says there are times when seeking professional advice makes all the difference. ‘Good, independent financial advisers (IFAs) play an important role in helping you make decisions that are right for your circumstances,’ she says. Advisers can make and save you money in the long run.

Header photo by Adeolu Eletu on Unsplash

Suggested Posts

New year, new financial goals

Nafisa Akabor | 12th Jan 21

View more
If you’re looking to invest in fractional shares, shares, unit trusts, or solidify your goals, here are our top five picks on where to begin.
Nafisa Akabor27 Followers

Mobile Payment Solutions

Nafisa Akabor | 25th Nov 20

View more
The global pandemic has prompted us to go digital in almost every aspect of business. Now more than ever we are seeing establishments ask for digital payments instead of cash.
Nafisa Akabor27 Followers

A small business success story - overcoming trying times

Aiden Sookdin | 17th Sep 20

View more
A pandemic and a national lockdown can drain the life out of any business, but thanks to Vodalend it was not the case for M6T Seal Cargo. 
Aiden Sookdin20 Followers