As we step into the new year, many of us have made some new year resolutions to live healthier, work harder, or spend more time with loved ones. But this year, why not do something that truly sets you up for success? Transform your budgeting and savings journey by setting SMART goals, meaning your goals will be Specific, Measurable, Achievable, Relevant, and Time-bound.

John Manyike, Head of Financial Education at Old Mutual, explains that there is an even a better opportunity this year to achieve this. “Although the cost of living is still increasing, the rand value of price hikes is slowing, while interest rates are also coming down. This gives consumers some space to manoeuvre to make 2025 a year of saving and a step towards financial freedom,” Manyike explains.

“Being smart about saving to ensure the best possible return on your money and meet your financial goals, regardless of whether they are short- or long-term, is key when it comes to planning ahead,” says Manyike.

Manyike explains that being smart is actually a framework against which an investor can plan:

Specific: Clearly define your goal.

Measurable: Determine your goal in a way that allows you to track progress.

Achievable: Ensure the goal is realistic given your financial situation.

Relevant: Align the goal with your personal values and objectives.

Time-based: Set a clear deadline for achieving your goal.

“Using these five steps allows you to clearly define where you are going with your investment and reduces a clouded judgement from your decision-making process,” says Manyike.

Manyike advises people to draft their plan against this framework, using a pencil and paper, to make the process real and allow for scribbling. “Once you have a firm idea of achievable goals against which to work, and a way of measuring them, you can move onto setting money aside,” he says.

In the current environment, it is difficult to put away money each month. Manyike advises drawing up a careful budget against bank statements to determine where discretionary spending is going and where it can be trimmed. One way of getting an objective view of where money is going each month is to use a tool such as Vault22, which helps with financial fitness, he adds.

“Although cutting down on a coffee on the way to work every day won’t buy you a house, it could add up to about R500 a month that could be saved,” he notes. “That R500 can be put away and will be worth more than R6 000 at the end of the year, which could well cover back-to-school expenses for 2026,” he explains.

Discipline in saving is also tricky, says Manyike. To ensure investments happen on a regular basis, he advises a monthly debit order. “Once you become used to that R500 not being available, it becomes easier to live without it,” he adds.

When it comes to determining where to invest, it’s important to speak with a financial advisor, he says. “A financial advisor can not only help you determine goals, where to invest, but will also provide you with regular updates so you can adjust your investment if you need to,” he says.With a clear plan then, not only will you know what you're working towards and have the confidence that you have laid the right foundation in place, but you will also be able to track your progress and celebrate your milestones along the way. So, whether your plan is to build up an emergency fund, save for your dream holiday, or invest for your future, SMART goals can turn your New Year’s resolutions into reality.