Top festive season shopping tips

Spend wisely this festive season

The South African Savings Institute (SASI) is urging consumers to spend wisely during the festive season. They warn that an ongoing financial crisis has left many countries, including South Africa, with declining savings and increasing unemployment levels. They point out that debt, one of the main deterrents to saving, forces the average household in South Africa to spend up to 78% and more of their disposable income on debt repayment. What’s left needs to be spent very wisely, especially during the festive season. “Remember, for most people, failing to have a festive spending plan is planning to fail financially in January”, says Frank Magwegwe.

Financial tips to help you make it through the festive season

• • Save a portion of your 13th cheque to cover some January expenses. Don’t forget to budget for school fees, stationary and uniforms, if you have children.

• • Have a special festive season savings plan for gifts and holiday expenses even if you can only save a small amount each month. This will help you to only spend money on what you know you can afford during the festive season.

• • If you did not save, don’t borrow money to spend on gifts and other festive season activities and trips. Stay at home and make cheap but personalised gifts for family and friends. They will appreciate it much more than an expensive gift that pushes you further into debt.

• • Try to make extra money before and during the festive season to boost your festive season spending budget. Hold a yard sale and sell off some stuff that you no longer need and use the cash to buy gifts or go on outings without going into debt.

• • Use cash or debit cards for purchases and keep better track of where your money goes. If you use a reward credit card that earns you points, make sure you budget accordingly and do pay off your debt in full every month. If in doubt, don’t use your credit card at all!

• • Shop around for specials and discounts to start loading up on gifts during the preceding year or as early as October. Don’t wait until the last minute and start rushing around and buying expensive gifts on impulse.

All year round, set up a monthly budget for yourself and your household and stick to it. Make getting out of debt your main aim. First pay back the accounts that are charging you high interest rates. Try to pay off a little bit more on these accounts every month while still paying the minimum instalments on your other accounts. Once your debt is out of the way or at least under control, you will enjoy a much less stressful festive season and New Year.

Sources

Don’t spend all your money in the festive season. Retrieved from: http://www.banking.org.za/what-we-do/corporate-citizenship/financial-literacy/don-t-spend-all-your-money-in-the-festive-season
Magwegwe, F. 2015. Nine tips to avoid festive spending hangover. Retrieved from: http://frankmagwegwe.com/9-tips-to-avoid-festive-spending-hangover/
Spend wisely this festive season. Retrieved from: https://www.compuscan.co.za/spend-wisely-this-festive-season/
Tips for saving during the festive season. Retrieved from: http://www.moneyweb.co.za/archive/tips-for-saving-during-the-festive-season/