The festive season hype is already upon us. A little cautious spending and saving could save us from a lot of financial constraints, discipline is the secret ingredient we often ignore this, says the head of financial education at Old Mutual, John Manyike.

Our November and December pay should carry us through to end of January 2020. Manyike says the festive season needs some radical mindset change in order to have a great take-off in January 2020.

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“We need to be realistic and consider the debts we still have and avoid taking unnecessary loans in January that will have neighbours asking for their ‘parcel’ in the first week of 2020,” says Manyike.

He said we need to prioritise the most essential things first before going on a festive splurge.

Here are some things to consider before going on a festive splurge:

• If you received a bonus or stokvel payout, consider paying off some of your debts.
• Parents must prioritise things like school fees, stationary and uniform
• Be realistic and balance your family’s expectations with what you can really afford, when you visit home.
• If you can, consider paying your children’s annual school fees when schools reopen and benefit from discounts offered by some of the schools.
• Speak to a financial adviser about starting an emergency fund to avoid the risks of living from hand-to-mouth.

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