20 December 2023
It’s that time of the year again and the festive season is upon us. We look forward to celebrating holidays with our family and loved ones and giving gifts are part of the excitement and fun too. It’s also a time where we want to spoil our kids for doing well at school or university and for those of us fortunate enough, to go away on a holiday and unwind a bit, after a tough year behind us.
Whilst we are creating memories and enjoying the holidays, once it’s all done, the new year sets in with resolutions, but also the dreaded reality of counting up the debt we may have incurred in the last few weeks and still the additional bills that need to be paid such as school fees, kids uniforms, stationary and waiting forever for January payday. Sound familiar?
Here’s a few tips to keep in mind, to reduce your financial stress in January.
Stick to your budget
Draw up a budget for the festive season and stick to it. Track your spending and make certain that you put aside enough money to cover monthly expenses such as your rent/ bond, car payments, groceries, municipal accounts. Don’t make the mistake of deferring any of these payments.
Buy gifts for your loved ones within your means. Loved ones and true friends treasure relationships more than items. Yes! It’s the thought that counts, so be creative and savvy in gifting.
Don’t be tempted
Don’t be tempted to use the money that you have saved during the year for your children’s school fees, stationary or other projects on entertainment in the hope that you will somehow make it up. You may have to incur additional debt that will burden you throughout the next year. Starting the New Year on debt is never a good idea.
Enjoy a low cost holiday
Whilst a holiday away from home is a wonderful way to unwind and relax, spend within your means. The bitter taste of unaffordable debt lasts a lot longer than the sweet memories of a short holiday. Be creative in planning short day trips, picnics and visits to places that are affordable. You can always save for that next holiday and enjoy it without regret once you can afford it comfortably.
Use extra cash wisely
If you have spare cash, take advantage of the many specials over the festive season to stock up on essential groceries and consumables that you can spread their use over the next few month. This will assist you to save a few rands too.
It’s also never too early or late to pay off your debt sooner with extra cash, or invest towards your future and retirement by investing in tax free or retirement savings. Spend wisely and stay clear from unnecessary debt during the festive season. Enjoy the holidays, but head in to the New Year in total control of your finances.
Ref: www.uasa.org.za