Year-end budgeting tips with Standard Bank
The end of the year is a great time to do a review of your finances to prepare for the coming year. It’s okay to admit that you may not have made the best financial decisions this year, but when you know better, you do better, and the new year is an opportunity to start on a clean slate.
Here are 6 ways to make sure that you feel more secure financially as we head into 2022:
- Start with reviewing your existing budget: to be better prepared for next year, you have to look at what happened this year. Look at your current budget and identify any possible areas of improvement. Can you reduce certain expenses while increasing the amount you save or put towards your investments? These are the types of things you should pay attention to in your review.
- Avoid Janu-worry with a festive season budget: the festive season is usually a time for celebration, so it is easy to get carried away with your spending. Set a strict budget for yourself where you factor in any possible additional income such as Christmas bonuses, as well as additional expenses such as travel expenses or gifts for family and friends. Make sure you stick to your budget to avoid any headaches in the new year.
- Decide what your financial goals are for the year: whether you want to have a specific amount in your savings by the end of 2022 or you are saving up for something such as a car or new house, you need to be clear about what your goals are to plan properly.
- Manage your money on the go: nowadays, it is easy to manage your money because there are a variety of apps that allow you to do so, from the palm of your hand. The Standard Bank App allows you to have 24/7 access to your accounts while also giving you the ability to open new accounts online, make immediate payments and get any necessary statements, letters and certificates, buy prepaid electricity, data and airtime, and help you track your spending, saving and investing. Our award-winning My360 app also provides users with a holistic view of their entire financial life across different institutions and platforms.
- Adjust your budget every month: there will be times when you will have to budget for things such as back-to-school supplies or vacations, birthdays and holidays. Make sure you prepare for these expenses in the budget for that month.
- Don’t forget to grow your rainy-day fund: the past year has shown us all how unpredictable life can be, so it is important to have funds put aside in case of emergencies. If you didn’t need to tap into your rainy-day fund this year, keep that money in its allocated account and continue to save even more money in the next year.
Budgeting can seem like an overwhelming task for some, but remember that the purpose of budgeting is to give yourself some much needed financial security.