Personal Finance Financial Planning

Smart money moves for retirement planning

Ruan de Wet|Published

January offers the perfect opportunity to honestly assess your finances and make small but meaningful changes. Learn practical strategies for managing debt, planning for retirement, and discovering how community living can maximize your financial resources, all designed to help you regain control and confidence with your money.

Image: Pixabay

In South Africa, most people take their longest break over the festive season. After a busy December, January brings a quiet pause. Many feel anxious about what comes next or worried that they overspent. Along with a chance to catch our breath, it is also the one moment in the year to look at your money honestly and reset without guilt. An honest look is the foundation of any financial comeback.

That shift takes the pressure out of planning. You are not trying to fix your whole life in January. People think they need a big, dramatic plan. You don’t. Start small, start now, and keep going.

Start with the basics

If December spending ran away with you, you are not alone. Rising prices and seasonal generosity make it easy to overshoot. The fix is simple: sit with your bank statements, look at every line, and separate essentials from habits that crept in. Check all your accounts. Spending patterns appear quickly.

Once you know your numbers, build a budget you can follow, not the one you wish you had. Your next move is to clear debt. Even small balances drain your resources when you consider the interest charged on debt. Start with ‘small wins.’ Aim to pay off 10 to 20% of a credit card in January. Take that win into February and keep the momentum steady.

Watch the big risks

People often underestimate the costs that hit hardest after 50. Healthcare, assisted living, home repairs, and car breakdowns sound predictable, but still catch many off guard. Another growing drain is supporting adult children and grandchildren, with unemployment and the high cost of living pushing families to lean on ageing parents.

This does not mean you cannot plan well or start fresh. It means you must be realistic about what you can afford and be honest with your family about your limits. Retirement money is finite. Protecting it helps protect your future dignity.

Planning for the next stage

If retirement feels close, start to adjust your behaviour now, even if the step feels small.

  • Maximise retirement contributions.
  • Keep comprehensive medical cover, if possible, because once you downgrade, it is hard to climb back.
  • Eliminate debt, starting with small wins.
  • Be clear with loved ones about your limits.
  • Simplify your financial life so tracking becomes easy.

A fresh financial start

If you feel late to the planning game, take heart. Small, consistent actions always beat unrealistic gestures. Save a little each month. Budget for end-of-year gifts now instead of turning to credit in December. Lay out your numbers, and you will find space for the fun goals too.

Most importantly, remember that control brings confidence. When you know where you stand, you are less vulnerable to pressure from family, scams, or emotional spending.

A healthy financial year does not start with perfection. It starts with a pause and one small step in the right direction.

* De Wet is the managing director of Trans-50.

PERSONAL FINANCE