In view of the upcoming festive season, Nolene Parboo, senior manager of savings and investments at Standard Bank, gives some advice to readers to help avoid lengthy debt and financial strain, so they can go on holiday. She offers the following 10 tips:
- Look at your existing budget
Avoid spending money on convenience buys, start by reviewing your bank statement to see where you are able to cut costs.
- Open a separate savings account
Transfer a set amount of money each month into this account. Not being able to obtain the cash immediately will help ensure you do not dip into your savings.
- Work out how much you will need to save
Knowing how much you need to put away each month increases your chances of reaching your goal. Having a set monthly amount in mind will help keep you focused. This process will also help to manage your expectations and encourage you to look for affordable options.
- Save without spending
If your leave times are flexible, consider going away out of peak season, as this can help you save as much as 50 per cent. Consider all-inclusive trips or package deals as they offer great value for money and will help you to stay in budget. Also review your bank’s rewards programme which often offers specials or discounts for travel.
- Sell unnecessary or unwanted items
You will be surprised how much you can earn out of items gathering dust in the garage.
- Use the “Old money jar”
Take all the silver coins you have at the end of each day and put them in a container. The trick is to avoid exchanging the coins at the bank until you need the money.
- Use your own bank only
Withdrawing from another bank is costlier and fees can add up quickly. Using the right account for your needs can save fees.
- Look at the way you use your car
Frequent unnecessary short trips can hike your petrol bill.
- Stick to your current phone if it works
Avoid having more than one contract at the same time. Saving a few extra thousand rand spent on a device during the year will give you extra days of holiday or assist in paying for daily expenses such as meals while away.
- Be realistic about what you can afford to do
Remember that money spent on credit is borrowed from the bank which needs to be paid back. If you can’t afford an expensive holiday, consider an alternative way to relax.
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