Readers’ queries answered by financial experts, sponsored by PSG Wealth. Email your queries to martin.hesse@inl.co.za
FESTIVE SEASON BUDGETING
When it comes to the festive season, I somehow cannot manage to make my money last throughout. What do I need to prioritise in order to make it through until the end of January?
Name withheld
Tanya Joubert, wealth adviser at PSG Wealth Pretoria East, replies: The festive season tends to be exceptionally challenging and overwhelming from a financial perspective and a lack of proper financial planning and conduct during this time can easily result in you having to start the new year off on the back foot by having to dip into savings or incurring debt. With the dire South African unemployment figures and the tough economic climate, many individuals might find that a speedy financial recovery is not on the cards due to the snowball-effect of this financial setback.
It is easy to get swept up by the festive hype and to give in to the temptation of overspending. With added expenses relating to gifts, entertainment and travel, it is imperative to rethink your priorities and to create a financial plan that will carry you into the new year. Setting realistic and personalised spending boundaries and exercising discipline can go a long way. Here are a few tips to help you with your festive financial planning:
- Determine how much you can afford to spend and allocate funds to the various spending priorities.
- Avoid spending money impulsively by making lists and sticking to them.
- Try stocking up on certain required items in advance.
- Limit gift buying or agree to a monetary limit upfront.
- Opt for the more affordable options when selecting items to purchase.
Using one or more of the above strategies can go a long way in making your money last longer through the silly season and into the new year.
PERSONAL FINANCE