- Every special occasion needs to be planned and budgeted for
- Priorities are key to achieving financial discipline
- Metshelo can be a buffer against poor spending
GAZETTE REPORTER
Christmas holidays are a very eventful but expensive occasion. However, much other occasions, the festive season needs to be budgeted and planned for because the costs incurred during this period often make the beginning of the year that follows very unpleasant for many people off to a bad start.
At a time where goals are renewed, intensified and redefined, the last thing that people need for their elaborate plans is budget limitations and/or festive loan repayments. First Cred offers the following tips on how people can escape the festive traps.
Remember your goals
The resolutions that are made, 5- or 10-year plans, and goals do not disappear with the festive season. Be mindful of these goals and the discipline that they require before spending.
If you are saving for a house, a plot a business or a car, the savings should be respected. Do not spend money that is meant to build your future.
Prioritise your expenses
Prior to any festive expenditures, essential bills such as your stop orders, school fees, rentals, savings and investments need to be covered. The November salary should be put to use as soon as it is received.
This way you will be able to identify how much ‘festive’ money you have with the comfort of knowing that your day-to-day obligations have been met.
Metshelo and Savings
The best way to manage holiday spending is to plan for it at the beginning of the year. Budgeting for holidays should be a solid part of New Years’ resolutions. Saving 10 percent of your salary every month for 11 months will give you a decent amount for used for yourself and your family.
Participating in communal funds is also a great way to ensure you have enough money at the end of the year.
Avoid credit cards
The festive season comes with a lot of temptation to spend due to the heavy marketing that transpires ahead of it. It is critical to refrain from using credit cards or clothing accounts during the festive season. Bear in mind that the money being spent is credit, which means it does not belong to you and will have to be paid back.
Be Smart with your Bonus
When the end of year bonus comes, invest or save it. This could be a great way to start the year. Let your bonus generate more income. Whether it is through purchasing stock, funding a business, investing or placing it in the bank to multiply, do whatever it takes to ensure that your bonus goes a long way.
Be disciplined
Create a budget and stick by it. The best way to go about this is to keep receipts and monitor your spending habits. Determine thresholds and be disciplined enough not to exceed them.
If you realise that you have been a bit on the generous side of spending, identify any problem areas you may have – be it overspending on clothing or fast food – and build disciplines around these habits