The festive season can be daunting when you think of all the additional expenses you have to add to your monthly budget.
With gifts to buy and family gatherings to cater for, it is easy to get yourself caught in a tangle of debt and empty grocery cupboards come January 2017.
Anton Hay, Director at Ecsponent Financial Services, advised that while it is best to plan ahead for expenses such as holidays, special events and gift shopping, there are a few last minute budgeting tips that can help ease the financial strain during December 2016 and January 2017.
“It is very difficult to pay for festive season activities with December’s pay cheque alone. So while you may not have saved up as much as you would have liked to for this year, keep this in mind as a potential New Year’s resolution for 1 January 2017,” Hay said.
For now, however, Hay shared his top budget dos and don’ts for the silly season and the back-to-school rush, which is just around the corner.
1. Don’t: reach for your credit card
“Tempting as it may be, borrowing money to pay for gifts and festive goodies comes with a hefty price tag of its own when you consider the interest and fees applied. If you do not have enough cash to buy a specific gift or treat, look for cheaper alternatives or try your hand at making those treats like cakes, biscuits and dinners yourself,” said Hay.
2. Do: make plans that fit your budget
Instead of inviting all your friends and family around for a fully-catered meal – that is likely to cost you in the hundreds, if not thousands of rands – make plans that spread the costs more evenly, for example, picnics or a traditional South African “bring-and-braai”.
3. Don’t: go on a untracked, no-limits spending spree when the sales hit
“Many of us struggle when it comes to resisting a ‘good deal’. For this reason, I would definitely suggest staying away from shopping malls and online shopping websites when January sales go live. While you may save 50 per cent on a pair of shoes you don’t need, you’ll save 100 per cent if you just walk away. Spending recklessly when trying to stick to a budget can really set you back on reaching your financial goals,” Hay explained.
4. Do: focus on getting school fees paid
Out of all back-to-school expenses, Hay highlighted that this is the one that needs the most planning and should be a priority long before new calendars are unwrapped.
5. Do: involve your children
“No matter how young your children are, back-to-school season presents a great opportunity to teach them about money. Whether it is a Google competition to find stationery at the best price or getting creative to make old rulers and pencil-bags trendy again, lessons in the value of money will get children thinking.”
6. Don’t: forget to start your new year right
From packing lunches at home to having fun nights in, Hay noted that small changes can go a long way towards staying on budget and saving for well-deserved treats and special occasions.
“Budgeting and saving money is never easy, but there are professionals who are able to help you get on track,” Hay concluded.
Do you perhaps have more information pertaining to this story? Email us at randfonteinherald@caxton.co.za (remember to include your contact details) or phone us on 011 693 3671.
For free daily local news on the West Rand, also visit our sister newspaper websites Roodepoort Record, Krugersdorp News and Get It Joburg West Magazine
Remember to visit our Facebook, Twitter and Instagram pages to let your voice be heard!