The festive The season is only a few days away and most people tend to make bad financial decisions by spending money on unnecessary items. This often causes a problem in January when you need to buy stationery for your children, especially if you come from a household with children. So, how can you avoid all this?


HAVE A BUDGET


According to Vuk’uzenzeleFirst draw up a budget. Write your needs and wants on a piece of paper or in a journal. Start with your living expenses such as rent/bond, electricity, water, debts and school supplies for your children (school fees, stationery and uniform). Once you have sorted your needs, you can plan smartly for your wants.


If you are planning a vacation, book transportation (flight, train, bus) and accommodation as early as possible. This can help you get discounts and better prices if you book early.


When it comes to clothing, teens often want expensive clothes with certain brand names. Set a limit in your budget and only spend when you have nothing left.


AVOID USING CREDIT FOR UNNECESSARY THINGS


Private property mentioned that you should only use your credit card to purchase supplies. Avoid using your credit card for purchases that are not necessary during the holidays.


MEET GIFT VOUCHERS


Make sure you get a gift voucher from a supermarket of your choice at the beginning of the year and top it up with money every month. You can open a gift voucher for as little as €50, depending on the store’s rules and conditions.


SAVE FOR JANUARY


One of the mistakes people make is spending too much without saving for the coming month. The joy of Christmas can be too much fun and often causes us to forget to prioritize our finances for the coming month once the holidays are over.


The ‘back to school’ The January season brings many needs for households with children. Try to buy early if possible as stationery and uniforms are usually cheaper during the holidays, but slightly more expensive in January as most parents typically buy stationery at that time.


PAY FEWER VISITS TO THE MALL


To the shopping center Each day or week can lead to you spending more because you can always see new sales and feel tempted to buy something. So if you know you’re easily tempted, limit your visits to the mall.


DO NOT BORROW MONEY


If you haven’t saved at the beginning of the year, avoid it borrow money to spend during the holidays. Stick to your budget, and if it happens that you run out of money, don’t pressure yourself to try to borrow it; instead, try to live within your means.


Happy holidays and be safe!


What’s the worst financial decision you made during the holidays?


Let us know by clicking on the comments tab below this article or by emailing info@thesouthafrican.com or sending a WhatsApp to 060 011 021 1


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