New Year, New Financial Goals: Preparing Your Funds for 2025

In January 2025, all prices are set to increase. We must prepare and update our family budget to avoid falling into an unmanageable financial pit.

What can we do?
Below is a list of recommendations that can help us prepare and keep an eye on our financial status:

1. 1. Create an updated budget for the upcoming months that includes all expense categories. Use data from your bank account and credit card app to help.
   2. Increase income: Expenses will likely rise, so check if you can increase your income at work (by requesting a raise, adding a shift, or taking on additional work). Look for temporary income sources that could help you navigate this upcoming period.

• Check reservists’ rights and benefits and take advantage of them: If you’ve done (or are still doing) reserve duty, check for benefits and grants you’re entitled to receive from Social Security and the assistance fund.

1. 1. Electricity: Compare prices from new electricity providers. This could reduce costs by about 7% or more.

• Managing your bank account and checking account: Compare plans, negotiate with your bank to lower fees or interest rates, and consider switching to a bank with lower fees.

1. 1. Stay on top of things: Regularly check your checking account for any discrepancies or unfamiliar charges, and make sure all bills are paid.
   2. Credit card usage: Try to consolidate your spending onto one credit card, even if this requires a specific app. This will help you track your expenses.
   3. Installments: Avoid paying in installments to avoid overloading your monthly expenses. Splitting payments can lead to accumulating debt, creating the illusion that a purchase is cheaper than it really is, and can result in high and costly fees, especially with credit card.
   4. Loans – 1: Do not take out a loan without checking the associated costs, interest, and fees. Make sure you know the total monthly repayment amount, not just the interest rate, and ensure you have the ability to repay the loan.
   5. Loans – 2: If you nevertheless need a loan, compare options from different banks or credit card companies. Consider taking a loan from your employer, pension fund, or family.
   6. Manage your savings: If you’re facing cash flow difficulties, consider halting your savings deposits. If you have liquid savings, think about redeeming them—now is the time to use them instead of accumulating expensive bank debt.
   7. Shopping: Be cautious of sales and temptations—even when shopping online. Think carefully about buying what you need, not just what is being offered—not every sale is worth it. Check return and refund policies.
   8. Food: Buy food in moderation based on the number of people in your household. Studies show that we throw away about 30% of the food we buy. It’s a shame to throw away 300 shekels out of a 1,000-shekel shopping bill for no reason.
   9. Subscriptions: Cancel or freeze unnecessary or unused subscriptions. Compare prices from communication providers.

• Consult professionals: Seek advice and do your research so you can make informed financial decisions.