“Having a budget in place and ensuring that you allocate spending for different priorities during this season does not mean you can’t have fun.”
The heatwave and weekend braais are not the only indicators that the festive season is officially upon us.
Other indicators include time off from work, bonuses, longer school holidays and the overwhelming desire to go on a vacation.
FNB says this season will also inspire others to be more carefree than usual as they spend time with friends and family.
However, if you allow yourself to get too carried away, that spring in your step may come to a sobering halt when the heat of Janu-worry’s financial struggles hits your pocket.
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Four tips to manage your money
Ester Ochse, FNB’s Product head for Integrated Advice, shares four effective tips to help you manage your money this festive season.
Create a budget and manage your spending
Ochse says the overwhelming desire to overspend due to getting paid early, receiving a bonus and the 13th cheque, is understandable because people have worked hard all year, so they deserve it.
However, “if you fail to plan, you plan to fail.” That is why she says budgeting, or lack thereof, can make a big difference between truly enjoying a carefree holiday season and massive financial headaches when January comes.
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“Having a budget in place and ensuring that you allocate spending for different priorities during this season does not mean you can’t have fun.
“Instead, it means that by planning and controlling your spending, you’ll have exactly enough for every activity you want to engage in between now and your next payday.”
Spend and earn with loyalty rewards programmes
Ochse emphasises the importance of making use of loyalty reward programmes, as they can often be a saving grace as one tries to scale back on spending.
“These programmes can put back hundreds, or even thousands of rands into your pocket.”
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Set spending limits for gifts and make the thought count
She adds that as big days like Christmas and New Year approaches, many might succumb to the pressure of spending on gifts.
And, if you have a large community of family and friends, that pressure multiplies by the number of people you need to give presents to.
“A great strategy is to agree with your loved ones on a price limit for gifts and opt for a gift exchange like Secret Santa. This way, everyone receives a gift, and everyone spends a roughly equal value when sourcing these presents,” she adds.
She emphasises that personalised DIY gifts for loved ones can have a lasting impact, as it is the thought that counts.
“A well thought-out, creative, home-made gift may end up being more meaningful to the recipient while also being easier on the pockets of the gift-giver.”
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Opt for at-home get-togethers and bring-and-braais, whenever possible
“Thankfully, for many South Africans, spending time at home during the holidays is par for the course,” says Ochse.
In the spirit of sharing this season, organising a potluck can make gatherings more intimate and enjoyable while easing the host’s catering duties.
Whether you are at the beach or in the bush, assigning catering responsibilities helps everyone contribute.
“While it’s important to let our hair down during the holiday season, one can never be too careful in ensuring that they employ as many smart strategies to stretch their money and ensure it lasts through December and until the next payday at the end of January.”
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