Proper financial management is not just about surviving the holiday season; it is pivotal for entering the New Year with a clear and organised financial outlook. Picture: File
Image: File
With the festive season upon us and the New Year around the corner consumers must think ahead about their upcoming bills and premium hikes that January brings in order to manage their money properly.
Consumers may also be looking for ways to stretch their salaries especially those who receive early paychecks in December and have to wait until late January for their next paycheck.
Denise Neethling, head of Marketing, Paymenow said: "To successfully avoid falling into a debt trap during the festive season, it's important to plan for December and also look ahead to January and beyond."
"As we anticipate increases in household premiums, such as medical aid, and with accelerating inflation impacting shopping costs, being mindful of our financial decisions is key."
Neethling shares ten tips for managing your budget over the holidays to make your money last longer.
- Don’t neglect your budget: Analyse your income and expenses from the previous month, then plan your festive spending. Make sure to include all bills, repayments or debt.
- Plan your spending: Write down a list of your household’s essential purchases and then research prices at various shops. You should purchase these items first and thereafter use any remaining funds for non-essentials.
- Try to shop online: Online shopping lowers can remove any temptation and help you stick to your prepared list. Look for retailers that offer home delivery at no extra charge.
- Don’t leave it to the last minute: Doing your shopping at the last-minute can often lead to you buying items at higher prices therefore you should stock up during sales to avoid last-minute gift buying
- The gift of giving: Think about setting family guidelines for gift-giving like limiting gifts to children or organising a Secret Santa,. This could help keep your holiday spending in check
- Use your rewards: Sign up for rewards or loyalty programmes and then leverage the points that you have accumulated to save on your overall bill.
- Don’t borrow: Avoid using credit cards or loans for holiday spending. If needed, consider discussing early wage access with your employer instead of taking on more debt.
- Plan for January: Be mindful that January often has extended expenses that includes back-to-school costs which require careful planning to manage.
- Refresh your budget: With the new year approaching, you should reassess your financial goals and budgets. Creating a physical budget can help you visualise your expenses and identify ways you can save money.
IOL Business