Start 2020 financially strong

2020 is shaping up to be a BIG year! On 31 January (barring further extensions), the UK will no longer be a member of the EU, NASA’s Mars 2020 mission, which will study the habitability of Mars for the human race, is scheduled for take-off on 17 July, the Summer Olympics take place in Tokyo in July and President Trump may or may not be re-elected in November. Here are a few pointers on how to make the year a financial success by starting strong.

1. Set new financial resolutions

Perhaps 2020 is the year that you’re planning to buy your first home. Or, if you’re already a homeowner, perhaps you’d like to increase your monthly bond repayments so that you’re able to pay off your home loan sooner. How about resolving to increase your retirement savings? Or putting a plan together to get a handle on your debt? And while you’re at it, include goals that bring you joy too, for example saving up for an overseas holiday or for a deposit on a new car if your current set of wheels needs replacing.

2. Relook your budget

At the beginning of January, take a careful look at your budget and examine each entry. You’ll likely find that there are several that need to be increased to accommodate rising costs. It’s also a good idea to look at your debit orders and amend these to reflect your new monthly repayments for the year. And, if your budget includes salaries for a domestic worker or gardener, take some time to work out their increases, taking inflation into account, and note them in your updated budget.

3. Make one small change

Trying to implement dramatic changes in your life seldom works – hence the reason so few people manage to see their New Year’s resolutions through. Instead, make 2020 the year that you make one small change – and stick to it. Need some inspiration?

• Open a savings account and set up a debit for a specific amount.
• Set aside pocket money for everyday purchases like coffee and lunch. When your reach the limit, drink coffee at home and take a packed lunch to work.
• Or take lunch to work every day and use the savings to boost your emergency fund.
• Spend one day of each weekend at home and save the money you would have spent if you’d gone out.

4. Make sure you’re covered

If you’ve experienced a life-changing event recently – perhaps you’ve tied the knot, bought your first home, or welcomed a baby into your family – it’s a good idea to assess your existing policies and decide whether or not they’re adequate to keep your loved ones financially secure should you no longer be around to provide for them. If you don’t already have life cover or any other long-term insurance policy like serious illness cover, disability cover or salary protection in place, give some serious thought to making 2020 the year you change this situation.

Time to get covered?

Standard Bank’s direct life insurance services include a range of insurance products designed to offer you peace of mind and keep you moving in the right direction. If you’d like to know more about our Life Cover, Serious Illness Cover, Disability Cover or Salary Protection, get a quote today or ask a customer service agent to call you back.

Frank Financial Services is a juristic representative of the Standard Bank of South Africa an authorised financial services provider (FSP11287). Products are underwritten by Liberty Group Limited.

Photo by nappy from Pexels

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