We've got all the answers to your money worries

Making ends meet in 2024 has been an ongoing challenge, with 75% of South Africans experiencing financial stress in the last year. Policyholders have had to review budgets and cut down on expenses, making sure the essentials and insurance debit orders are paid. But managing budgets and the family’s expectations is difficult. We identified 5 money worries and found ways you can manage them so you can turn over a new leaf in 2025. Don’t miss out on this advice; we know that each and every policyholder will find something helpful and perhaps even life-changing.

Money worry #1: You are overindebted

Nothing ruins your sleep more than worrying about how to pay your creditors. Being overindebted isn’t a bad reflection on you; it happens to many South Africans. The good news is that you can manage and pay off your debt.

• Work out exactly how much you owe, to whom, what the minimum repayment is, and when it is due.
• Develop a plan to pay off your debts. You’ll need to pay the minimum repayment due or more, and not take on any new debt to achieve this. If you have extra funds, you can put those toward clearing one debt. Once that debt is paid, you can focus on the next debt and clear that. You can read more about how to pay off your debt in ‘Debt happens, we can help you fix it’.
• If you cannot afford repayments, you need to ask for help. Either contact your creditors and set up a new repayment plan that you can afford, or consider debt review, also known as debt counselling. In debt review, your debt counsellor will set up a repayment plan that your creditors agree to, which is affordable for you and ensures your living expenses can also be paid.

Find more ways to become debt-free in the Truth About Money, a 1Life Insurance initiative, free Ditching Debt course. Truth About Money also offers debt management services to help you manage your debt.

Money worry #2: Not making ends meet

Expenses have risen significantly, and your money often runs out before the end of the month arrives. You can make a plan to reach the 31st with some bucks in your bank.

• Make sure you have a plan to pay off debts and follow it. This will reduce your expenses as repayments will fall.
• Review your budget and be ruthless about expenses, cutting those you do not need. Cut out the expensive holidays and take a staycation with family, spend less on transport by becoming a one-car family and using public transport where you can, say no to loan requests from family and friends, and learn to say no to children – or find cheap ways to entertain them. Learn to resist pressure from friends, colleagues, and social media to fund a lifestyle that you can’t afford. You can use this budget spreadsheet to help you balance your income with your expenses.
• Ensure everyone affected by your budget knows about and agrees to the cuts. Explain that living within your means is the only option, and a lot less stressful for everyone in the long run.
• Increase your income. Come up with ideas for a side hustle and ask your family for assistance and support. Every extra rand you earn will make a difference. Learn more about side hustles in 10 golden rules to start a side hustle, The truth about side hustles, and Marketing your side hustle.

Top tip: Take Truth About Money’s Cash Crunch course to help you find extra funds and earn extra income.

Money worry #3: You are not saving or investing, and have no financial plan

Dealt with money worries 1 and 2? Now, you are ready to deal with money worry 3, which will build your generational wealth and reduce your money stress.

Without savings and investments, you are financially vulnerable and could end up taking on debt to fund emergencies. Without a plan to fund your future financial goals, such as a comfortable retirement, you won’t achieve them. This is when you lie awake at night wondering what will happen or spend too many working hours fantasizing about winning the lottery (it’s very, very unlikely!). Here’s what to do:

• Set your financial goals: write down what you would like to achieve and how you would like to live, such as buying a new car or home in 5 or 10 years’ time, or having R10,000 in an emergency fund.
• Meet with a financial adviser who can assess your goals objectively. They can help you plan how to achieve them, such as investing R1,000 a month in a unit trust fund or ETF. Your financial adviser can also review your budget with an independent and objective eye. In many cases, they can find ways to save and cut expenses so you can afford your financial goals and a few luxuries.
• Treat the amount you want to save and invest as an essential monthly expense: commit to a certain amount each month, before any extras such as holidays and new sunglasses!

Top tip: Learn more about financial planning and investing in Truth About Money’s free financial education course, read blogs, and listen to financial news and podcasts – at least once a week!

Money worry #4: You cannot cope with life’s “what ifs”

A “what if” is: what happens if I have a car accident, if my spouse passes away, if my child needs long-term medical care or has special education needs, if my house burns down or is flooded, or if my car is stolen. These can easily keep your eyes wide open into the small hours, and if they happen, the financial impact is devastating. There are solutions that meet your needs and your budget.

• Make sure you have life and funeral insurance so burial costs are covered and your family has funds to pay their living expenses when you are no longer around. Talk to a skilled 1Life Insurance consultant or financial adviser about affordable cover that meets your needs.
• Consider short-term insurance such as for your car and home so you are not financially ruined if you are in an accident, are burgled, or your home is destroyed by fire or floods.
• Talk to your insurer about making your premiums more affordable if you are struggling to pay each month. Policies are flexible and can be tailored to your needs and budget. A skilled 1Life Insurance consultant or financial adviser can assist you.
• Complete or update your will, so your loved ones inherit your assets on your passing. Truth About Money offers a free Wills and estate benefit where you and your spouse can get a free or updated will. You should also make sure you appoint a Guardian to care for any minor children.
• Finally, you know that emergency fund you’ve been meaning to start or add to? Do it today! Your emergency fund will ensure you can pay the unexpected bills and don’t have to take on any extra debt. Just a few rands at a time – whatever you can afford is better than nothing.

Money worry #5: Always fighting with your family about money

Family not following your money rules or ruining your budget, resulting in a shouting match that no one wins? These are high-stress situations that not only ruin your sleep but also destroy the harmony in your home.

• Start talking to your family regularly about money, sharing with them the true state of your finances and making sure children know that you are taking control of the situation.
• Develop a budget and share the details with your family, including every relative you are supporting. This will ensure every family member knows what you can and cannot afford!
• Involve your family in your budget and financial plans. Ask them for suggestions on how you can cut expenses or earn a little extra.
• Encourage your family to help set financial goals, whether these are paying off debt or saving for a new car. Get their buy-in, and they are more likely to accept budget cuts.
• Let your family, especially your children, know that you have a plan for the “what ifs,” so they don’t have to worry about what will happen to them if something happens to you.

When you need extra help

There are professionals who can help you talk about and solve your money worries when you cannot cope on your own.

People you can talk to include:

• Financial advisers, who can help with financial plans for any money worry
• Wealth coaches, who can ensure you break bad financial habits and build good ones
• A counsellor, who can help you deal with stress and anxiety

You can also talk to a community or spiritual leader who can offer support and advice.

Top tip: Read more in Six people you can turn to in a financial crisis.

Be patient

As a 1Life insurance policyholder, you know that making good money decisions can change your loved ones’ lives for the better. So can this advice to help you successfully deal with your money challenges and reduce your money stress. It may take some time, but commitment and patience will be rewarded. Within a few months of following your plans, your money stress levels will fall and your finances will be in much better shape. Now that’s a life change worth making!