How to level up your financial game

With the cost of living showing no signs of letting up and economic uncertainty still part of daily life for millions of South Africans, many of us are looking for smarter ways to take control of our money and start the year strong, now that ‘JanuWorry’ is behind us. We just don’t know exactly how to go about it.

Let’s face it, money matters can feel scary and complicated, but the truth is that it doesn’t have to be. 

“Knowledge is power when it comes to finances, and the aim isn’t always to earn more – it’s often more about managing our money matters better, to make our money work for us – and not the other way around,” says Debt Rescue CEO Neil Roets.

It’s about taking intentional, consistent action and making small, smart decisions that can set you up for a year of financial stability and growth.  

“Having full awareness of your financial situation is the first step on the path to achieving financial wellbeing and levelling up your financial game,” says Roets, who is a recognised expert in debt legislation and financial restructuring.

Here are three powerful tips that he advocates to help you master your finances.

Take stock of your money

By understanding your income, expenses, debts, and savings, you can create a budget that allows you to live within your means, save for the future, and avoid unnecessary debt.

Start the year by reviewing your last three months of bank statements. Categorise spending into essentials, lifestyle, and financial goals. Many people are surprised by just how much leaks into small, recurring costs. A realistic budget isn’t restrictive — it gives your money direction.

Understand your financial position

When you’re aware of your financial situation, you can set realistic and achievable financial goals.

The first step is to prepare a well-structured financial statement that will give you a clear overview of your financial health.

Your financial statement should include:

Income – List all your sources of income, including your salary (if you are an employee), investments, rental income, and any other sources of money coming in.

Expenses – Keep track of all your expenses, both fixed (rent or mortgage, utilities, insurance) and variable (groceries, dining out, entertainment). Categorise your expenses to identify areas where you could feasibly cut back.

Debt – List your monthly debt repayments

Once you have completed this, deduct your expenses and debt repayments from your income to get an understanding of how much you have left to save, or where cuts need to be made.

This will help you to ascertain whether you might need assistance in the form of debt counselling, if you are over-indebted and whether you may need the help of a professional to prevent a debt spiral.

Once this is done, get an understanding of your assets and liabilities.

Assets – List all your assets, including savings accounts, investments, property, vehicles, and other valuable possessions, like jewellery and art.

Liabilities – These may include mortgages, student loans, credit card debt, and other loans or financial obligations.

With this clarity, you will be far more capable of building a practical financial plan for the year ahead.

Increase your earning potential

In the famous words of legendary American investor, businessman, and philanthropist, Warren Buffet: “The more you learn, the more you earn.”

Now is the time to upskill, negotiate your salary, or explore side income opportunities aligned with your strengths. Even a small additional income stream can help you pay off debt faster or reach your investment goals sooner.

“When it comes to mastering your finances, one of the smartest things you can do is to invest in your own education,” advises Roets.

“Budgeting for courses and digital skills that increase your ability to manage your financial scenario can pivot you into higher-paying positions and can dramatically increase your earning potential,” he concludes.

By committing to these sensible money habits today, you can shape a brighter and more prosperous financial future for yourself.