The festive season often brings less than festive cheer with the gift shopping and vacation taking, which makes it very easy to overspend.
Budgeting and saving up is a big hassle for many people and although we know the importance of saving a penny, it is very easy to neglect that notion.
Most people tend to go overboard in December because we get paid early, however, you need to keep in mind that the money needs to last until the end of January.
Er24’s financial manager Muhammed Cassim has five easy steps to stretch your salary and 13th cheque during the festive season, and avoid a massive overdraft bill in the New Year.
1. Pace yourself:
Credit cards are not gifts from God. They just create impulsive spending and come with high interest rates.
We can’t have every single thing that we want. Be comfortable with yourself and your money. Don’t feel pressured to buy certain things for friends or family.
2. Work out your expenses.
Document every household expense. It makes it easier to keep track of your money.
Keep in mind expenses that can change, such as electricity.
3. Start a budget.
Everyone hears budget and wants to run!
Start by listing your income and expenses on a monthly basis, you will be left with excess cash.
The key trick is to slit that excess money into two portions; savings and spending.
You need to have the discipline to keep your savings money untouched, a budget should not be a once-off thing. It gives an idea of where the expenses lie.
4. Use cash and not a card.
It is much easier and safer to swipe but the perception of having cash on you is that automatically you become aware that your money becomes less and less. It slows you down and curbs costs.
When you have a card, you are willing to swipe for just about anything.
5. Make little changes.
When the festive season approaches, it is better to shop smartly.
Go to places and different outlets and compare prices and brands. If you don’t need it, don’t buy it.
