Getting ready for 2025: kickstart your financial goals
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As the final quarter of the year begins, it is time to start preparing for 2025 and now is a good time to line up your financial goals for next year.
“October is not just about reviewing where you are but also about where you want to be and taking action to get ahead. By using this time to reassess your financial strategy and set clear, actionable goals, you can build momentum that will carry you into 2025.
“It is about making intentional choices now to ensure long-term success, rather than waiting for the new year to start planning,” René Basson, head of brand at Satrix, says.
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October also happens to be Financial Planning Month, which offers the ideal opportunity to review your progress and put plans in place for the year ahead.
Basson suggests these key actions you can take this October to ensure you are on the right track:
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Review your financial goals: Take a moment to assess your short-, medium- and long-term financial goals. Do they still make sense for your current situation and life stage? How are you tracking your achievements?
Check your budget and automate investments: Examine your monthly budget and consider automating your investments — essentially, “paying yourself first.” If you set up recurring investments, ensure they still align with your financial standing and goals.
Does your financial products still match your lifestyle: As your life changes, so should your financial products and protections. Major life events, such as marriage, having children, or career shifts, can significantly affect your financial needs. It is vital to regularly review and update your insurance coverage, savings plans and investment strategies to ensure they match your evolving circumstances.
Think long term: Do not rush into decisions. Investing is a long game. Being informed about your portfolio’s performance allows for better decision-making that supports long-term growth.
When reviewing your portfolio, Basson recommends paying attention to:
Diversification: Consider investing in different asset classes, such as property, shares, bonds or cash and across various industries and geographies. This portfolio diversification will mitigate the risk of your investments underperforming, should the economy take a downward trajectory. By diversifying your investments, you lower the risk of some of the higher-risk asset classes.
Risk profiles: Based on your risk tolerance and investment personality you can adjust your investment portfolio accordingly and ensure you are comfortable with the risk profile of the funds you chose. This also aligns with your life stage – how far you are from retirement will help determine how you build a risk-adjusted portfolio.
Fees: Be aware of the fees you pay for your investments. High fees can erode long-term growth and therefore, it is critical to know what you pay and whether the fees are justified.
Market awareness: Keep yourself informed of what is happening in the markets but avoid knee-jerk reactions to short-term volatility. Consider market developments that could inform your decision-making. Also, consider your investment vehicles: are you only invested in one vehicle? If so, should you consider adding alternatives to help diversify your portfolio?
Performance: Be aware of your portfolio’s performance. Underperformance may warrant a review but be sure to consider market movements and know that volatility is to be expected. The aim is to be aware of your portfolio details so that you can monitor it effectively and not make rash decisions. Investing is a long game and you must be prepared for ups and downs. The purpose of a review is not necessarily to make changes, but to be fully appraised of your portfolio’s standing and be prepared should you wish to make adjustments. Remember, the longer you are invested, the more you can capitalise on the magic of compound interest.
Basson says by taking the opportunity to align your financial decisions with your life goals, ensuring you are ready for the road ahead, will not only prepare you for 2025 but set you up for lasting financial success.
“Proactive planning today lays the foundation for a prosperous year. Take charge and make 2025 your best financial year yet.”
