'Tis the season to be organised

With holidays upon us and a New Year looming, now is the time to reassess your personal finances, put new strategies in place, and set some new goals. If you've received a Christmas bonus, you are one of the fortunate ones. Here's a tip – put it to good use. Put it into your bond, or into your unit trust account, or use it to pay off some debt.

Now ask yourself some questions:

Did you reach your financial goals this year? If not, why not? What strategies can you put in place in 2008 to make sure that you do reach your financial goals? This is worth doing with your spouse and other members of your household. The cost of food rose sharply in 2007, by 11%, and that can be one simple reason why you didn't save as much money as you wanted to.

Draw up a new budget for 2008, one that includes realistic amounts for groceries, and one that makes allocation for increases in the interest rate (the payments you are currently making on your bond might increase in the year ahead if the interest rate rises, unless you have a fixed rate on your bond).

Set New Year resolutions for your finances

Here are some suggestions:

• Put R200 extra into your bond each month.
• Open a new unit trust account.
• Attend a course on investing on the stock market.
• Draw up a will, or review your existing will.
• Review your short-term insurance – can you get cheaper cover elsewhere?

Create a financial plan

To really get your financial planning on track, make use of Sanlam's financial planning tool, SanlamConnect. This wonderful resource will guide you through scenario planning and establish a financial plan that is tailor-made just for your individual needs. Visit www.sanlamconnect.co.za

Update your records

Record-keeping is so easily neglected during the year. You will feel more in control of your finances if you can create a file with certain essential documents in it. (This is not a nice fact to point out at this time of year, but this file is particularly useful should you die suddenly. Let your spouse or a close friend know where these documents are kept.)

Your record file should contain the following:

• Name and contact details of your doctor, dentist, lawyer and nearest relative.
• Certified photocopies of your ID document, passport and birth certificate.
• Tax number, and a brief note of where your tax records are kept.
• Details of all your bank accounts and credit cards, and of any outstanding debts.
• Important information about your will, such as where it is kept, when it was last updated, and the names of your executors.
• Your pension/provident fund name and membership number.
• Name and contact details of your employer (or, if you are self-employed, the details of your business partners and business registration papers).
• Details of all your policies and investments, e.g. life assurance, RAs, unit trusts, shares, short-term insurance.
• Your medical aid scheme and member number.
• Contracts, such as marriage contracts or divorce papers.
• House and property papers and car registration papers.
• Valuation certificates of valuables.

And finally, is your medical cover sufficient? This is one important area of your financial planning that should not be neglected. To help you, Money Matters will kick off 2008 with an informative series on medical cover, including such topics as how to choose the right scheme, how medical aids operate, and tax and your healthcare contributions.

Best wishes for a pleasant festive season and a prosperous 2008!

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