Resist the urge to cash in investments this festive season

It’s beginning to look a lot like Christmas and the temptation to splurge this festive season may be irresistible.

But it’s important for consumers to make healthy money management decisions amid the merriment if they want to survive the longest month of the year – January.

Product Portfolio at FNB Wealth and Investments Sebastian Pillay is encouraging people to stay committed to their short-term or long-term investment goals.

“People tend to give in to the temptation of ‘being merry’ when spending time with their loved ones during the holiday season,” he explains.

“While this time of year is a season for giving and creating lasting memories, you still need to keep an eye on your financial goals for the future,”.

Pillay says it takes immeasurable self-discipline to be frugal at Christmas and avoid dipping into investments to boost festive spending.

Here’s some tips on how to budget this festive season:

• Set aside a budget for spending: The holiday season particularly is often characterised by impulsive spending. To avoid the temptation, set aside a clear budget and maintain financial discipline.

• Stick to your financial goals: Your goals form an important part of your financial journey and wellness. These goals extend to your investments, such as a nit trust, money market fund, exchange traded fund, or tax-free savings or share accounts.

• Invest in yourself: It is not only about eating healthy or exercising, but it’s also about managing your finances so that you can retire comfortably in your golden years. It is always advisable to avoid touching your retirement savings for any reason apart from actual retirement. Even when changing jobs to pursue new life and career goals, you shouldn’t cash in retirement savings.

• Give a gift that will last: If you are serious about gift giving, you could try getting a loved one an investment portfolio. For as little as R10, you can gain access to and maximize investment exposure to top global ETN shares such as Amazon, Apple, Coca-Cola, Facebook, McDonalds, Microsoft, Netflix, Tesla, Adobe, Ford, Berkshire Hathaway, Goldman Sachs, JP Morgan, PayPal, and Visa.
  
• Pay your December bills early: Most people get paid on 15 December. Pay your December bills earlier, and put some money aside for January. This will help you sail into the new year with some cash in hand. Whatever is left can be used sparingly for the holidays.

“Challenge yourself to make wise money decisions that you can be proud of and take into the New Year without any stress of Jan-u-worry,” said Pillay.

(Compiled by Narissa Subramoney)

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