HOW to manage your money like clockwork in 2025

Impending VAT hikes in 2025 have Mzansi looking over their shoulder, but here’s how the experts manage their money in a tough economy …

Top tips from the experts on how to hold onto your money in a difficult economy. Image: File/Fotor

South Africa is suffering the opposite of mo’ money, mo’ problems in 2025. Following the postponed February Budget Speech, consumer confidence in the economy has taken a massive hit. Combine that with a 12.7% Eskom tariff increase that kicked in yesterday (Tuesday 1 April 2025) and we’re back to counting our pennies every month.

Worse still, we most likely have to wait until May 2025 before we know if the proposed 1% VAT hike over two years will be approved. Or what new cockamamie plans the National Treasury have dreamed up to empty our wallets without us knowing. Which is why you need to start managing your money like a professional. It’s really not hard if you stay motivated and work towards this plan …

MANAGE YOUR MONEY LIKE CLOCKWORK

The first trick to safeguard your money is to always look after yourself first. What this means is always set aside a portion of your income for savings before spending on anything else. Economists recommend you put away at least 10% of your earnings each month. This rainy-day fund can come in handy for all sorts of things. Keep doing this until you have roughly three months of living expenses set aside.

Next up, watch your spending. Everything is getting more expensive, so don’t take what you purchase in 2025 for granted. Simple to say, but if you find you don’t have money left over at month end, you’ve got to start spending less. Keep grocery slips and use spreadsheets to stay on top of your bills throughout the month. Saving small amounts incrementally on those nice-to-haves like takeaway coffees and pastries add up quickly.

REVIEW REGULAR EXPENSES

Regular expenses you can’t survive without are pretty easy to track. Stuff like medical aid, home/car insurance and bank/credit card charges. Do yourself a favour and review these this month. You’ll be shocked to find how many hidden costs are lurking in your monthly accounts. Compare, cull what you don’t need and renegotiate what you do.

Likewise, you can save money by checking over your home internet, cellphone, app, streaming and other subscriptions. Perhaps, like me, you’re still on the same basic phone package you’ve had since varsity. Monitor how much money you spend on data, streaming and apps. And if you operate primarily of your home Wi-Fi setup, why are you paying extra for all that mobile phone data?

VEHICLES AND DEBT

When it comes to money and cars, most underestimate the real cost of ownership. For example, experts say you should add on roughly 20% onto your monthly repayment to know what your car really is costing each month. There’s car insurance, fuel, services, and unforeseen mechanical issues – they all add up. So, if your car is paid off. Congrats, keep it that way, look after it and don’t put yourself in debt again buying a new one.

Next up, kill any debt you may have as soon as possible. Debt is the biggest enemy in your battle for money freedom. Debt drains your income and damages your credit score if left unchecked.

WORK TO A CALENDAR

This is a great way to have a healthy relationship with money, simply work towards a calendar. The more you do, the quicker you’ll form healthy financial habits. There are a number of guaranteed events that happen each year that you can work towards:

April – Set financial goals. Budget, plan and book a holiday for later in the year. This is a positive reward to keep you motivated now that the year is in stride. Because life is too short to only save.
May – With an eye on that holiday, stretch your money as best you can (everything mentioned above) to meet your saving goals.
October – It is tax season, so submit your tax return and claim for a home office and other expenses like electricity and internet (if applicable).
November – Use a potential tax refund constructively. Be sensible and set up a tax-free savings account (TFSA) or take care of important debt repayment.
January – Maximise the tax benefits open to you early in the New Year. Think TFSAs and Retirement Annuities (RAs). You can contribute up to R350 000 (27.5% of your taxable income) into an RA annually.