Spend wisely this festive season

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The festive season is just a few days away, and most people tend to make bad financial decisions by spending money on unnecessary items. This often creates a problem in January when you have to buy stationery for your children, especially if you come from a household with children. So, how can you avoid all of this?

HAVE A BUDGET

According to Vuk’uzenzele, first things first, draw up a budget. On a piece of paper or in a journal, write down your needs and wants. Start with your living expenses, such as rent/bond, electricity, water, debt, and school necessities for your children (school fees, stationery, and uniform). After getting your needs sorted, you can then plan smartly for your wants.�

If you plan a vacation, book as early as possible for transport (flights, train, bus) and accommodation. This might help you get discounts and better pricing for booking early.

When it comes to clothing, teenagers often want expensive clothes with certain brand names. Have a limit within your budget and don’t spend until you have nothing left.

AVOID USING CREDIT FOR UNNECESSARY THINGS �

PrivateProperty mentioned that you should only use your credit card to buy necessities. Avoid using your credit card for purchases that are unnecessary during the festive season.

FAMILIARISE YOURSELF WITH GIFT CARDS �

At the beginning of the year, make sure you get a gift card from any grocery store of your choice and fill it up with money every month. You can open a gift card from as little as R50, depending on the rules and terms of the store.

SAVE FOR JANUARY�

One of the mistakes that people make is overspending without saving for the month ahead. The Christmas jolly can be too fun and often makes us forget to prioritize our finances for the upcoming month once the festive season is over.�

The ‘back to school’ season in January comes with many needs for households with kids. Try to buy early, if possible, as stationery and uniforms are usually cheaper during the festive season but a bit more expensive in January, as most parents typically buy stationery at that time.�

PAY LESS VISITS TO THE MALL �

Going to the mall every day or week might cause you to spend more, as you might always see new sales and feel tempted to buy. So, if you know you are easily tempted, limit your visits to the mall.

DO NOT BORROW MONEY�

If you didn’t save at the beginning of the year, avoid borrowing money to spend during the festive season. Stick to your budget, and if it happens you run out of money, do not pressure yourself to try to borrow it; instead, try to live within your means.

Happy holidays and be safe!