Do You Have Your 2025 Plan?
Your 2025 Plan
It’s January and no doubt you are working on some resolutions and plans for the months ahead.
It may be to do with your physical or mental health or maybe plans for a well deserved break later this year or how to deal with your finances.
It is great to have goals and work towards them.
If you are in debt review have you thought about some specific things you could do over the year to improve your financial situation?
Do you have a 12 month plan?
Let’s look at some suggestions on how you could divide up many important tasks into bite sized activities each month.
January: Start Strong With an Updated Budget
Kick off the year by updating your budget.
Prices go up and hopefully so will your income this year. Monitor your daily expenses and identify areas to cut back on non-essentials. If you overspent during December, tighten your spending this month to make up for it.
It is also beneficial to take a look at the progress you have made so far in paying off your debt through debt review.
Get to know your figures and why not check your progress each month when you get your PDA statement?
February: National Debt Awareness Month
In Feb why not chat to your family and friends about your situation and how they can help you stay on track.
Who knows, maybe they need debt review themselves?
Early in the month consider scheduling a meeting or call with your Debt Counsellor to review your progress. If you chat to them, you can discuss any changes in your financial situation, like increased income or unexpected expenses. You will have these figures because you have already reviewed your budget in Jan.
March: Insure What Matters Most
Review your insurance policies to ensure they meet your needs.
If you have someone who helps you, then chat to them or shop around for competitive quotes (but don’t sacrifice essential coverage for lower premiums).
People in debt review can consider adding credit life insurance if it’s not already part of your plan—it can protect your family in case of unforeseen events. Chat to one of the expert suppliers your Debt Counsellor works with to see if it is right for you.
April: Get Organized
Take time to organize your financial documents.
Update your will if necessary and ensure it reflects your current circumstances. If you don’t have one, why not create one now?
Make sure your family knows where to find important documents like your debt review court order or 17.1 & 17.2s. Can they find insurance policies, and do they know your account details?
Chat to your partner about the passwords and codes they need to know or where you buried the gold bars (or whatever).
May: Prepare for The Winter Chill
With winter approaching, plan for higher electricity bills and maybe additional visits to the doctor.
Its probably wise to budget a little extra to cover increased usage as you may have to run a heater or leave the geyser on longer. And cold weather can often mean sniffles and coughs. You can’t be too careful these days so, you may have to buy extra meds or take the kids to the doc. Factor in these possible costs.
June: Budget Review
You had a look at your budget in January and now it is time to see how you are doing.
Are you actually sticking to what you planned or not?
Have prices shifted more than you thought?
Think about your monthly debt review payment.
Is there any way you can pay a little bit more to speed things along? Even a small increase can save you a lot over time in interest and fees.
July: It’s National Savings Month
Are you saving towards annual costs?
Celebrate National Savings Month by opening or contributing to a savings account. Focus on building an emergency fund, even if your contributions are small.
Could you cover your insurance excess if needed?
Remember to save towards year-end expenses, even if it’s just a few hundred rand a month. December will be here before you realise.
August: Plan Ahead For When You Are Debt Free
Take time to think about your long-term financial goals.
If your debt review is nearing completion, start planning for the next steps, like managing your finances independently or getting help to do so.
You can also start to research things you can do with your available funds once you finish debt review. You will suddenly find you have a lot of available cash once your debt is paid off. So, will you take on more debt or start to invest?
September: Spring-Clean Your Finances
It’s Spring and that means it’s time for a spring clean.
This is a great time to identify any unnecessary expenses or subscriptions that have snuck into your spending.
Why not create a simple spreadsheet to track your assets, liabilities, and progress in reducing debt?
October: Medical Aid Planning
Medical scheme announcements are released around this time.
Chat to your broker or review your plan to make sure it meets your family’s needs. You can also speak to your Debt Counsellor about how adjustments in medical contributions fit into your overall financial plan and ability to pay your debt.
November: Are You Ready?
Check your savings and make sure you have what you need for the end of the year.
Before you know it, December will be here. So now is the time to make an extra push to save if you have not already done so.
Set a festive season budget and discuss realistic gift-giving plans with family and friends. Consider low-cost or homemade options to avoid overspending. If possible, use reward points or loyalty programs to stretch your budget even further.
December: Shift Your Debt Review Payments Earlier
Remember, debit orders and debt repayments still need to go through this month!
Avoid dipping into funds meant for essentials. Talk to your Debt Counsellor about when your debt review payment should go off this month. It might be wise to shift the normal payment a bit earlier if you will be paid earlier.
And January isa long month, so plan ahead now to ensure you have enough to cover groceries, transport, and extra school-related costs.
Make a Plan For The Year
These are just some suggestions of things you can do during the year to keep your debt review and finances on track.
Why not make up a list of things you would like to do this year and which month you plan to do them in?
Doing something positive each month this year will help you stay committed to debt review while working towards a healthier financial future. So, make a plan.
