Twelve months, twelve resolutions: a year-round approach to better money habits

Every January, we make bold resolutions about health, productivity, and finances, yet by February, many of them have already faded into the background noise of daily life. The problem with one big financial resolution is that it often feels too large, too vague, and too distant. A more effective approach may be to break your financial goals into twelve smaller resolutions. By focusing on one practical goal each month, you’ll build momentum, discipline, and confidence throughout the year.

January: Start with a financial plan: The new year is the perfect time to begin with clarity and intention. Before setting any other goals, have a professional financial plan prepared or reviewed. This plan should outline your current position, quantify your goals, and establish a roadmap for achieving them. A sound plan provides structure and direction, the foundation for all financial success.

February: Maximise your retirement contributions: The tax year ends on the last day of February, making this your final opportunity to top up your retirement annuity or pension contributions and claim the tax deduction. Up to 27.5% of your taxable income can be contributed, capped at R350 000 per year. Every rand invested here reduces your tax liability while building long-term wealth.

March: Conduct a debt audit: March marks the start of the new financial year, and the ideal time to take stock of your liabilities. List all your debts, their interest rates, and repayment terms, paying special attention to high-interest debt such as credit cards and store accounts. Once done, formulate a clear repayment plan, starting with the most expensive debt first.

April: Review your insurance portfolio: With the new tax year underway, April is an excellent time to ensure your life cover, income protection, and disability benefits are still appropriate, keeping in mind that major life events, such as marriage, divorce, or parenthood, can change your cover needs. Avoid over- or under-insuring by scheduling an annual review with your financial advisor.

May: Revisit your family’s financial goals: May sits at a natural midpoint before the second half of the year, an ideal time to gather the family for an open conversation about money. Whether you’re saving for education, a home, or travel, align your household’s financial priorities and revisit each person’s goals. Discuss spending habits, savings targets, and any upcoming expenses such as school fees, insurance renewals, or renovations. These conversations build transparency, accountability, and shared purpose, the foundation of long-term financial stability.

June: Do a mid-year budget check: As winter approaches, take time to review your budget and spending patterns, bearing in mind that inflation, interest rate changes, or lifestyle creep may have affected your cash flow. Adjust your budget where needed to stay on course with your financial goals. Use this month to re-evaluate subscriptions, reduce unnecessary costs, and redirect savings into investments.

July: Celebrate National Savings Month: July is officially South Africa’s National Savings Month, and the perfect reminder to assess how much you’re setting aside each month. If your savings rate hasn’t increased since last year, it’s time to raise the bar. Review your debit orders, track your progress toward key goals, and identify areas where you can save more.

August: Check your credit record: Your credit report is a vital indicator of your financial health. You’re entitled to one free credit report per year from each credit bureau. Review it carefully for errors, outdated information, or fraudulent accounts. A strong credit profile not only secures better loan terms but also signals financial discipline.

September: Spring-clean your finances: Begin by decluttering your financial life: close dormant bank accounts, cancel unused store cards, and consolidate overlapping investment products. Review all debit orders and subscriptions to ensure they’re still relevant and offering value. Update your contact details with your financial institutions, check your beneficiaries on life policies and retirement funds, and ensure your estate documents reflect your current wishes. Digitally, tidy up your admin: organise tax certificates, policy documents, and investment statements into clearly labelled folders, preferably stored securely in the cloud and accessible to a trusted person if needed. 

October: Plan your festive-season budget: October is the ideal time to start planning for the festive season. By preparing early, you can avoid the financial hangover that so often follows December. Set realistic limits for gifts, travel, and entertainment, and make provision for January’s fixed expenses such as school fees and insurance renewals. A clear festive budget allows you to enjoy the holidays without compromising your financial stability.

November: Review your medical aid, gap cover, and your Will: November is a month for two important financial housekeeping tasks. First, medical aid schemes open their annual ‘option change’ window, your opportunity to review benefits, upgrade plans, and ensure your cover still meets your healthcare needs for the new year. Second, November is also National Wills Week, a campaign that highlights the importance of having a valid, updated will. If you haven’t reviewed yours this year, now is the time.

December: Strengthen your emergency fund: With annual bonuses and thirteenth cheques arriving, December is the perfect month to fortify your emergency savings. Aim to have three to six months’ worth of essential expenses in a separate, interest-bearing account. Strengthening this safety net allows you to start the new year from a position of security rather than stress.

Twelve resolutions may sound ambitious, but each one is small enough to be achievable and meaningful enough to make a difference. By spreading your financial focus throughout the year, you’ll avoid the burnout of unrealistic January goals and cultivate consistent, confident progress instead. In the end, the best resolution isn’t to change everything at once, it’s to keep improving, month after month.

* Odendaal is the financial planner at Crue Invest.

PERSONAL FINANCE