Toast to the bonus, but remember January

Qiniso Ntuli, managing director at Royal Square Financial, a financial advisory company, said each year in November people get anxious as the festive season kicks in and thoughts of January finances come to light. Ntuli explained that people who have a better experience in January are financially savvy over the festive season. He added, “Poor planning puts people in a crunch in January. Some people get a bonus, but they quickly use it on things they can do without, instead of spending it wisely and covering debt.”

Ntuli’s suggestions to prepare for January include:

•  Write a budget for January now and allocate finances to it using your December paycheck and bonus.
•  Open a separate bank account and deposit money for January into it, don’t touch it.
•  Allocate a budget for the holidays and stick to it, give yourself time to buy presents before December and look for bargains.
•  If you are currently in debt do not “reward” yourself with your December salary and bonus, pay debts.
•  Share your financial plans for December and January with someone who can hold you accountable, such a financial adviser.

Things to avoid at all costs:

•  Avoid making purchases on credit.
•  Avoid unplanned trips or holidays with friends, it will affect your budget.
•  Do not become a financial institution this festive season, give with care.
•  Do not take a personal loan when you run out of money in December. You will feel the burden in January when you have to pay back the money.
•  Do not borrow from a loan shark to “better” your festivities. Interest rates charged by loan sharks are very high.

To get financial advise contact Qiniso Ntuli by emailing him at qiniso@royal-square.com