The new year is often a time for reflection and setting new goals. While many of us may be tempted to dust off last year’s resolutions and stick them back on the fridge, let’s approach 2025 with a fresh perspective. This year, let’s ditch the generic goals and set actionable financial plans that stick.

Forget the “I’ll save more” mantra. This year, let’s get specific.

Step 1: Track Your Spending

Before you can set realistic goals, you need to understand where your money is going. This means tracking your expenses. Splendi can be a valuable tool in this process. By monitoring your spending habits, you can identify areas where you can cut back and redirect those funds towards your financial goals.

Instead of vaguely estimating, meticulously record every expense for a month. Use a spreadsheet, a budgeting app, or even a notebook. You might be surprised to discover where your money is actually going – perhaps more on takeout than you realised, or those daily coffees adding up quickly.

Step 2: Set SMART Financial Goals

Vague goals like “save more” are unlikely to be achieved. Instead, set SMART goals:

• Specific: Clearly define your goal. Instead of “save money,” aim for “save R5000 by June 30th to put towards a down payment on a new car.”
• Measurable: Your goal should be quantifiable. How much do you want to save? How much debt do you want to pay off?
  

  • Instead of: “Get out of debt.”
  • Try: “Reduce my overall debt by 10% by the end of the year.”

• Achievable: Set realistic goals that you can actually achieve. Don’t set yourself up for failure by aiming for the moon.
  

  • Instead of: “Become a millionaire this year.”
  • Try: “Save R1000 per month for the next six months towards a holiday fund.”

• Relevant: Ensure your goals align with your overall financial aspirations and lifestyle.
  

  • Instead of: “Save money for something.”
  • Try: “Save R300 per month for my child’s future education.”

• Time-bound: Set a deadline for achieving your goal. This creates a sense of urgency and helps you stay motivated.
  

  • Instead of: “Start saving.”
  • Try: “Save R500 per month for the next three months to build an emergency fund.”

Step 3: Create a Realistic Budget

A budget is a roadmap for your finances. It helps you allocate your income towards your expenses and savings goals.

Instead of: “Just try to spend less.”

Try:

• Allocate a specific amount for groceries, rent/bond, transport, entertainment, and savings each month.
• Use the 50/30/20 rule: 50% for needs (rent, utilities, groceries), 30% for wants (entertainment, dining out), and 20% for savings and debt repayment.
• Categorise your expenses in a budgeting app to easily track where your money goes.

Step 4: Check Your Credit Score Regularly

Your credit score is a crucial indicator of your financial health. It impacts your ability to borrow money, secure a loan, and even rent an apartment. Splendi provides you with free access to your credit score, allowing you to monitor it regularly and take steps to improve it if necessary.

Instead of: “Assuming your credit score is good.”

Try: Check your credit score with Splendi monthly.

Understand what factors contribute to your score: Payment history, credit utilisation, credit history length, credit mix, and inquiries.

Identify any negative factors and take steps to improve them.

Step 5: Utilise Splendi’s Cred’ Ed Platform

Splendi is more than just a credit reporting tool. Our Cred’ Ed platform is packed with valuable financial education resources. From budgeting tips to debt management strategies, our platform empowers you with the knowledge you need to make informed financial decisions.

Instead of: “Figuring everything out on your own.”

Try:

• Explore our articles and videos on topics like budgeting, debt management, investing, and credit repair.
• Utilise our calculators to estimate loan repayments, calculate your debt-to-income ratio, and more.
• Learn about different investment options and how to build wealth over time.

Remember: Setting and achieving financial goals is a journey, not a destination. Celebrate your milestones along the way, and don’t be afraid to adjust your plans as needed. With consistent effort and the right tools, you can achieve your financial aspirations in 2025 and beyond.

Ready to take control of your finances? Sign up for Splendi today and start your journey towards a brighter financial future.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult with a qualified financial ¹ advisor for personalized guidance.