Many of us have entered the new year with bright-eyed wonder, hearts filled with expectations and steadfast goals etched into our brains.

As we declutter, rearrange, and physically choose to make healthier choices, the same concentrated effort should be applied to our finances.

According to Ralene Grobler, financial adviser at Momentum Financial Planning, we often focus on making physical changes but do not undertake to do a financial detox, thus ridding ourselves of anything that may be quietly sapping our energy and bank accounts.

“Financial clutter is not just a messy spreadsheet. It is the silent drag created by outdated insurance policies, duplicated cover, and subscription-creep of a digital-first economy,” she said

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“Left unmanaged, this clutter can be more damaging than high inflation.”

As inflation gets steered toward a lower 3% target, the greatest opportunity for financial growth this year may not come from earning more, but from managing better.

Here is how to perform a practical and actionable financial detox to reset your year:

• Audit the silent drains
The average South African juggles more digital subscriptions than ever, from streaming and apps to premium banking tiers.

“Individually these costs seem small, collectively it represents a significant leak,” said Grobler.

Detox: Print the last three months’ bank statements and highlight every recurring debit.

If you have not used a service in 30 days, cancel it. You can always re-subscribe, but the pause button is your best friend.

• Trim the overlap
“Over time, we accumulate financial products like old clothes. You might have life cover through your employer, a separate private policy, and a funeral plan that overlaps with both,” she said.

Detox: List every insurance and medical aid product you pay for, and look for duplications.

Modern, bundled products often offer better value than multiple standalone policies.

However, do not cancel a policy before consulting a professional, as your insurability may have changed since you first signed up.

• Confront debt
Many of us use credit to bridge the gap from pay day to pay day.

“South African households spend an average of 37% to 48% of their income on servicing debt; this is the most important area to detox,” warned Grobler.

Detox: List your debts from highest interest rate to lowest.

Prioritise the most expensive debt (usually retail store cards or credit cards).

Even an extra R200 a month can shave months off a repayment term.

Don’t dive into a financial detox alone.
When you set a goal to transform your physical appearance, you enlist the help of a trainer, a dietician, or a trusted friend to share the journey with; the same should apply to your financial health.
“Many South Africans view financial planning as a crisis response; something you do when things go wrong,” explained Grobler.

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“A financial adviser is a proactive and professional partner who can help you navigate areas such as interest rate changes, fix your bond, or use the saved interest to boost your retirement fund.

“With the ongoing rollout of the two-pot retirement system and National Health Insurance developments, an adviser ensures your portfolio remains compliant and optimised.

“By spending just one hour a month reviewing your financial clutter, you stop the leaks and start building a sustainable foundation.”