Financial education platforms and planners all say that Janu-worry is usually driven by the same few habits repeated every year.
If January was a hangover, it could spell a three-month babelaas after the festive season financial excesses. It’s the same trap everyone stumbles into, year after year.
That’s probably why Janu-worry has been dubbed the same. It’s that stack of bills that’s nauseating, and Back to School is the equivalent of the Texas Chainsaw Massacre to your wallet.
But is it the time of the year, or the way that we navigate it? Financial planner Jacques Momberg from Momberg Consulting said the problem is not January. It is how households cross the threshold into the New Year.
“The biggest January mistake South Africans make is chasing a fresh start with old habits. Emotional spending disguised as progress, such as a new car, new credit or a new lifestyle without a plan. By March, the stress is baked in,” he said.
Financial education platforms and planners all say that Janu-worry is usually driven by the same few habits repeated every year. So how exactly do we change our habits?
Money with purpose
RossCoet Financial Services wrote in a blog that one of the biggest drivers of financial stress is vague planning. Clear, measurable goals give direction to spending and saving and make progress visible.
Momberg agreed. “Structuring the appropriate planning as well as goals from the start will ensure you protect your plans and bring peace of mind for the year to come. Are you making sufficient provision for retirement? Do you have an emergency fund in place?” he said, and added that money with a purpose behaves better than money left to wander around.
Your budget must be Big Brother, not the Kardashians
What this means is that your budgeting must reflect reality as it is, in a mostly unedited, no-makeup edition.
Financial powerhouse Morgan Stanley’s financial education unit noted that budgeting is not a one-time exercise. It needs to be updated when income, expenses or responsibilities change.
Momberg said many households underestimate how quickly hidden costs creep in. “Set up a budget for your family to ensure you are spending your income wisely. Hidden expenses creep up when we fail to plan, and debt can snowball,” he said.
Not the green ambulance, but financial paramedics
Online advice site The Budget Mom suggested that an emergency fund is one of the strongest buffers against financial anxiety because it prevents people from turning to credit during unexpected events.
Momberg also said emergency savings are not optional. “Emergency funds should cover three months of core expenses, but more than the number, it is the mindset. Treat it like oxygen, not a luxury. In this climate, resilience starts with readiness,” he said and added that even a modest buffer can prevent a single crisis from creating several crises.
Also Read: Designer babies are closer to reality than you think
Don’t ambush yourself
Momberg said that reviewing short-term insurance and structuring planning properly helps prevent potentially forgotten or set-aside costs from becoming financial ambushes.
“If you feel you are paying too much for your short-term insurance, do not settle for the first quote you get,” he said.
Known expenses should never arrive as surprises, he said, but they must also be managed.
Meerkat, a budgeting platform, suggested that Janu-worry often comes from irregular expenses such as school fees, uniforms, annual subscriptions and insurance premiums that are not part of normal monthly budgets.
Rank your debt, tackle it like a hit parade
Momberg said not all debt deserves equal priority. “When it comes to debt, the golden rule is simple. Protect what keeps you going. If missing a payment means losing your car, your home, or your ability to earn, that debt goes to the top of the list,” he said.
“You can survive a few angry phone calls, but you cannot function without transport or shelter.”
Go over everything, always
Momberg said annual reviews are essential to ensure savings contributions keep pace with inflation and income growth.
“You must save the correct component of your income to reach the required replacement ratio at retirement, and this needs to be reviewed annually,” he said.
Consistency, not willpower, builds stability. Website MoneyTalksNews recommended automating savings and bill payments to remove emotional decision-making and missed deadlines from household finances.
Take care of tomorrow
Financial planners consistently warn that financial stress is not only about cash flow but also about risk exposure.
“You need sufficient life cover, income protection, disability cover and severe illness cover,” Momberg said. He also stressed that wills must be updated, medical aid and gap cover reviewed, proper diversification ensured, and offshore allowances used where appropriate.
