Get your finances on track with this mid-year money makeover

75% of South Africans experience financial stress. You don’t have to be one of them! Complete our 8-step mid-year review to see if you are on track to achieve your financial goals (well done!) or if there are areas where you can make improvements. Work on these and you can end 2025 with less debt, more cash in hand and less money stress!

1.  Review and update your budget

Your budget guides your spending by allocating income to expenses, savings and investments. Budget wisely, stick to your budget, and you’ll find that you spend within your means and save for your goals, such as a deposit on a new car and/or a comfortable retirement.

To do:

• Review your income to make sure this is accurate: for example, include any increases or decreases in income based on salary increases and/or side hustles.
• Examine your expenses to ensure they are also up to date, taking price increases into account such as increases in electricity costs. If you need to re-balance your budget so that income equals expenses, try to cut out certain expenses and reduce non-essential items such as entertainment.

Top tip: monitor your budget at least once a month so you know if you are on track or need to make further adjustments.

2.  Plan for once-off expenses

Big expenses don’t have to ruin your budget, use up all your savings or put you into debt! Plan ahead for these so you can set money aside, and when the time comes to pay you won’t have any financial stress.

To do:

• List any expenses you may incur and when, including car service and maintenance costs, home maintenance and repairs: such as painting, installing or updating security, appliance repair and/or replacement such as a new fridge or washing machine, and medical expenses that you need to pay for, in full or in part, out of your own pocket.
• Put a number to the expense and work out how much you need to save each month, such as R200 a month for six months.

3.  Update your debt management plans

25% of respondents in the 1Life Insurance 2025 Generational Wealth survey said they had fewer debts at the start of this year than 2024! That’s great – now make sure you are on that list for 2026. How? Aim to repay your debts and don’t take on any more debt! Your debt management plan, which is your plan to repay debts either before or by their due date, will guide your review.

To do:

• Make sure all your debts are listed on your debt management plan with total amounts outstanding and minimum repayments updated.
• Based on your budget, make sure the repayments are affordable, and if you can pay a little extra to repay your debts faster.
• If your repayments are not affordable – ask for help! People you can turn to if you need help managing your debts include a financial adviser, wealth coach, your bank and a debt counsellor if you are considering debt review.

Top tip: Remember to check your credit report and credit score for accuracy at least once a year!

4.  Update your insurance policies

Insurance protects your wealth and gives your family future financial stability. It is an essential expense! Your policies may need to be updated if your circumstances change, for example if your income increases or you welcome a new family member!

To do:

• Review your sums assured for your funeral, life and short-term cover and check that they are appropriate for your needs as well as your family’s. Your financial adviser can also assist with this step.
• Make sure you can afford the premiums and any premium increases. If you are struggling to pay premiums when they are due talk to your insurance company or financial adviser to find ways to make insurance affordable.
• Check that the personal details such as contact numbers and emails as well as beneficiary details are current.

5.  Plan now to avoid December debt and JanuWorry

Want a really relaxing December on holiday with the family, or a big celebration for friends and loved ones? And cash on hand for the extra January expenses? You need to plan for it now!

To do:

• Work out how much what you want for an end-of-year holiday or celebration will cost, such as R5 000 for end-of-year accommodation and food, and set aside a fixed amount each month to cover these expenses.
• A 1Life survey found that 95% of parents experience stress when preparing for the new school year. Plan your January budget, including back to school expenses as a separate item so you know if you need extra funds at the start of 2026. If you can, work the extra funds into your budget now, or aim to find a side hustle in the months ahead to earn a little extra! You can also apply for learners’ financial aid and/or bursaries now for 2026.

 Top tip: Get your family involved so you are all committed to saving for these costs!

6.  Update your will and life file

An updated will and life file speeds up the inheritance process!

Your will lists your wishes and instructions on how you want your assets to be distributed to loved ones when you pass away. It is a must-have document. To do:

• Review your will to check that the details are still correct, such as personal details and a list of your assets.
• Make sure the executor and heirs are named, and change these if appropriate such as when a beneficiary passes away.
• If you don’t have a will, you can use the free services from the Truth About Money’s Wills and Estate Benefit for help with your will. Truth About Money is a 1Life Insurance initiative. Your financial adviser or lawyer will also be able to assist with your will.

Your life file is a collection of all your important documents and details, such as bank account numbers, cell phone contract and home loan account number. Having these in one place helps your executor wind up your estate quickly, without wasting time looking for documents. You can read more about your life file in this blog.

To do:

• Create or update your life file this June!

7.  Prepare for your tax return

Tax season starts soon! If you need to submit a return, it’s time to get your tax affairs in order.

To do:

• Make sure you have all your documentation, such as travel records, housing allowance details and other benefits, as well as salary, medical aid and retirement contribution details, so you are ready to submit your return in time to avoid penalties and interest.
• Visit the SARS website to make sure you can submit your return electronically on your preferred platform, such as e-Filing or the SARS MobiApp.
• If you want assistance with your tax return, set up an appointment with a financial adviser or registered tax practitioner.

8.  Review your investments, pension funds and retirement savings

You’re setting aside money each month, but are you on track with your investments and longer-term financial goals?  Schedule an appointment with your financial adviser today for a 6-month or annual review!

To do at your appointment:

• Review your investments and make sure you are on track with your financial plans.
• Ensure you are invested in tax-efficient products where appropriate, such as tax-free savings accounts and retirement annuities.
• Check beneficiary nominations on each investment and update contact details if they have changed.

Six months with no financial stress

You can get there! Complete the review, take action when needed, and you can end 2025 in great financial shape!