January is acknowledged as a tough month for many South Africans.
This is especially true if the festive season was ‘a little more financially jolly’ than it should have been, according to Sbusiso Kumalo.
Kumalo is the chief marketing officer for African Bank who has warned consumers that the months following December will continue to be tough.
“The depressed economy continues affecting jobs and the economy in general. The last few years have taught us so much about the value of saving for an emergency,” explained Kumalo.
He advised consumers that it would be wise to heed this, and other money lessons, into years ahead.
“Good financial planning and money management have no curfew or expiry date; these are the foundation of providing well for your family, realising your dreams and being able to have a financially secure retirement.”
His seven tips on how to make your money stretch further this December:
- Work out a budget for gifts, holidays, meals and entertainment, and stick to it. Remember to factor in your regular expenses (rent, policies, bond repayments) when planning this budget.
- Write a list of everyone you want to buy presents for, and then write ideas of what to get them. Don’t be tempted to buy extras – stick to the list.
- Do research. Shop around and compare prices so that you don’t simply purchase the first thing you see. Keep an eye out for festive season specials and online flash sales. Most retailers also offer loyalty cards with good savings, so take the time to swipe this to earn a decent amount in points or cash-back on the card.
- Buy small and significant, rather than large and lavish. Remember, there is nothing wrong with being moderate. You don’t need to show someone love by spending a fortune on them.
- Consider debt consolidation if you are really struggling to manage your debt.
- Try and avoid spending money that you don’t have. Buying on credit means you will end up paying an increased price for the money that you borrowed.
- Don’t blow your entire bonus. Consider investing it and watching it grow over the long term.
“Whatever your plan is for festive season expenses, the key is sticking to the plan. Don’t be tempted to dip into your savings. It’s important to be money savvy so you can start the new year debt and worry-free,” concluded Kumalo.
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