The holiday fever is in the air and the majority of people are looking forward to a break to rest and recharge.
The festive season is also a time when spending increases and shopping is on top of the list. However, it is a short season and you need to be cautious not to overspend.
Here are some tips to manage your money:
- Make a list of gifts and groceries
The first step is to make a list of everyone you need to give a present to and the number and size of family gatherings. Then track your purchases against these lists.
2. Set a budget
Once you have your lists, decide how much you can spend on each category like gifts, groceries and entertainment. Your budget should be realistic and what you can afford.
Ideally, this money should come from savings, a bonus or a 13th cheque.
Another helpful tip is to use the FNB Smart Budget functionality on the FNB App to help you stay on track.
3. DIY Gifts
Making gifts is a great way of saving money while entertaining the kids.
There are all sorts of ways to make gifts, like baking biscuits, making preserves or other keepsakes for family and friends.
5. Use credit cards carefully
Credit cards can be useful tools but use them carefully and stick to your budget.
At the end of each month make sure you can clear the outstanding balance in full and not just the minimum amount due, this way, you avoid the cost of interest.
6. Use loyalty programmes
This is a good time to use your saved-up loyalty cash or rewards.
For example, if you have saved your eBucks during the year or have some available, use them to buy presents or fuel if you’re going to travel.
7. Using the extra money
If you do get a windfall such as a bonus, be responsible for this money.
The rule of thumb is an 80/20 principle – 80 percent of the money to pay off debt or save for an emergency or cover January expenses such as school fees.
Then spoil yourself with 20 percent of the money or use that for the festive season.
8. Avoid the long Janu-Worry
If you are paid earlier in the month, avoid the temptation of spending this money during the month of December.
A good tip is to move the money into a quick access savings account, then “pay yourself” on your normal salary date.
Remember that several financial institutions will process debit orders earlier in the month, so make provision for this as well.
December is a good time to rest and recharge your batteries for the year ahead.
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