3 Tips for financial wellness in 2022

Whether you are already a home owner or getting ready to buy a home, being financially fit in 2022 should be at the top of your priority list this year.

In economically disruptive times it might feel even harder to save money and stick to your budget, but it is more important than ever to do so as well as you can. We have set out a few tips to help you get started on the right path for the year ahead.

Spend less - and track it

There is a running joke that January is 3 months long, and the truth is without a budget and reckless festive spending it really does feel like there is just too much month left at the end of your money.

If you are tracking your spending throughout the year you will know exactly how much you will need to cover all your expenses - include weekly, monthly, and yearly expenses. This will allow you to ensure you have enough money for the essentials and knowing how much you can spend on the nice-to-haves during the holidays and the weeks leading up to payday in January.

Use an app or go old school with a notebook and write down everything you spend money on - even that sneaky takeaway for lunch!

Save more - and track this, too

It is important to know how much you are saving as well - not only to make sure that you are on track to reach your saving goals but also to help you stay motivated. What better way to stay on the path than seeing how far you have come?

Saving money is not always easy when prices go up and it seems your salary doesn’t grow along with it. However, a few changes can help you have a few extra ‘randelas’ at the end of the month that you can put into a savings account.

The first thing you need to do is pay yourself - even if it is R100 a month at first, save what you can and find ways to cut down on food costs, etc.

Instead of buying heavily processed foods and ready-made meals you can find out where the local farmers market is and buy directly from them, instead of that easy premade lasagna, make your own. Meal planning will help you plan ahead, cutting down of food waste and unnecessary trips to the grocery store (and unnecessary spending on things you don’t need) Shop around for specials on your essentials, and don’t fall for those “specials” that really aren’t.

2022 is all about getting back to basics.

Pay your debts

One of the things you will need to do to ensure you have more money available is to pay your debt faster if you can. If you can afford to make a larger payment on even one installment of whatever debt you have, do it. 

If you’re buying a home, you’ll want to eliminate as much debt as possible. Bond originators and banks require borrowers to follow strict rules regarding debt-to-income ratios; you’ll need to focus on your debt repayment strategy. Be smart about the debt you carry; try to “snowball” your debts by paying off the smallest debt first and then adding that amount to the next smallest debt once it’s gone.

If you already own a home, try prepaying your mortgage. Nothing feels as good as knowing your home is all paid off and you can redirect those payments somewhere else. 

Financial wellness is all about building a foundation of financial stability, with good money habits, that will last you a lifetime. Building this foundation will also ensure that your children will already have the tools required to build their own financial futures.