Resist the urge to splurge this festive season

MBOMBELA – It’s year-end and the urge to splurge can wreak havoc on personal finances. Bonuses are being paid out in December, salaries are paid earlier and consumers have to contend with marketing strategies which call for spending.

This is the perfect storm for personal finances to be set adrift. How then does one manage to go through this season to emerge relatively financially unscathed in January?

Marlies Kappers, head of marketing at financial services provider, DirectAxis, weighed in on the debate.

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“Because it’s the holiday season, it’s easy to overspend and if you’ve been paid early in December, you have to wait for up to a month and a half before you get paid again at the end of January,” she said.

“If your salary is paid in mid-December then that’s when the debit orders will come off, rather than at the end of the month when you usually get paid,” explained Marlies.

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She suggested implementing the following to avoid this situation:

1. Make a plan: If you get paid early, remember you’ll have to stretch your budget until the next pay cheque. Also consider any upcoming expenses in January. Plan your spending accordingly.
2. Resist overspending: The combination of a year-end bonus and early salary payment may make you feel flush but resist the temptation to splurge. First make sure you have enough money to cover your expenses into the New Year. Think about using some of your bonus to reduce or settle some debt. If you can, try to save some money before spoiling yourself.
3. Pay attention: Don’t ignore correspondence or messages from banks or other financial service providers informing you about earlier debit order payments. If you know your debit orders will come off earlier, you can work out how much you’ll have to spend until you get paid in January.