As we enter into the final month of the tax year for 2024 we still have some time to take advantage of some tax opportunities.

Even if you don’t have the resources to take full advantage of these any contribution will make a difference to your tax payable.

Retirement Annuity 

You can deduct up to 27,5% of your taxable earnings on contributions to retirement funding. So if you have a pension fund and you contribute 15% towards it you can invest a up to 12,5% more into a retirement annuity.This can be done with a lump sum adding it to your existing retirement annuity. 

Tax free savings account       

You should consider the opportunity of investing a lump sum into a tax free savings account before the tax year end. You are currently allowed R36 000 per annum. So you can top up to this amount before the end of February taking full advantage of the allowance and then be in a position to invest more in the next tax year from March onwards. 

Capital gains tax                                                                                                             

If you are disposing of any investments you could sell some in  February using your         R40 000 exclusion off the gain in this tax year then sell again in March taking up your R40 000 exclusion for the new tax year.

Donation tax                                                                                                                     

If you are considering donating assets up to R200 000 to someone other than your spouse you should split the donation between February and March. This way you will take full advantage of the R100 000 per annum.

Planning opportunities exist in the month of February for the tax savvy. Work with the various tax breaks and take full advantage while you can.

Improving your personal balance sheet is crucial for achieving financial stability and success. A strong balance sheet can help you plan for retirement, save for big purchases, and weather financial setbacks. Here are a few ways to improve your personal balance sheet:

1. Reduce debt: High levels of debt can weigh down your balance sheet and make it difficult to achieve your financial goals. Focus on paying off high-interest debt, such as credit card debt, first.
2. Increase savings: Building up your savings can improve your balance sheet by providing a cushion for unexpected expenses and helping you reach your financial goals faster. Consider setting up automatic transfers to a savings account each month to make saving easier.
3. Invest in assets: Investing in assets such as stocks, bonds, or real estate can help grow your net worth and improve your balance sheet. Be sure to diversify your investments to minimize risk.
4. Review your expenses: Reviewing your expenses regularly can help you identify areas where you may be overspending and make adjustments to your budget. This can free up money to put towards paying off debt, saving or investing.
5. Use credit wisely: Using credit can help you build a positive credit history and improve your credit score, which can make it easier to get loans and credit at favorable rates in the future. But, remember to use credit wisely and avoid taking on too much debt.
6. Seek professional advice: A financial advisor can help you create a plan to improve your personal balance sheet and achieve your financial goals. They can also help you understand the best ways to invest and manage your money.

Remember, improving your personal balance sheet is a long-term process that requires patience and discipline. By following these tips, you can take control of your finances and achieve financial stability and success.

If you’ve found yourself in debt after the festive season, don’t panic – there are steps you can take to get back on track. 

Measure your situation

One of the most effective ways to get out of debt is to create a budget and stick to it. This means looking at your income and expenses and deciding how much you can realistically afford to put towards paying off your debts each month. 

Tackle the most costly debt first

It’s also important to prioritize your debts so that you can tackle the most pressing ones first. This might mean focusing on paying off high-interest credit card debt before paying off lower-interest student loans. 

Explore the benefit of combining your debt

A debt consolidation loan can also be a good option, as it allows you to combine all of your debts into one with a lower interest rate and single monthly payment. 

Talk to you creditors sooner than later

If you’re having trouble making payments, try negotiating with creditors or considering a credit counseling service for education and support. 

Stay focussed

Remember, it’s possible to work towards a debt-free future by creating a plan and sticking to it.