Planning tips to tackle Januworry and secure your future

( @PERSFINZA )

- REEONA CHETTY

THE new year is here, and many will be looking to improve their finances, but the real question is, where do you start? The first step is simple: know where you stand. When it comes to financial planning, knowledge is power, and understanding your current financial position is the foundation for a better 2026.

1. Start with a financial checkup

Just as you would review your health, you need to review your finances. This is not a DIY exercise. Book a meeting with a financial advisor to assess your current plan and whether it is still correct and adequate. A proper review will help you build a realistic budget and prioritise your spending between necessities, nice-to-haves, and contributions to your future. A good benchmark is to allocate 50% to 60% on needs, 20% to 30% on wants, and at least 20% on saving for the future. Currently, many South Africans are far from this ideal. Debt servicing can account for as much as 62% of income, well above the recommended maximum of around 30%, which makes financial progress extremely difficult.

2. Save money by reviewing your current expenses