Reassess your festive financial behaviour

THE end of the year is here and is a time for holidays, fun in the sun and relaxation. Like many people, you’ve probably worked hard throughout the year and deserve a break and to be spoilt, but the silly season can also be hard on your pocket.

So before this time of year has you in its clutches, it’s time to reassess your festive financial behaviour. Eunice Sibiya, head of Consumer Education at FNB said, “The end of the year isn’t called the Silly Season for nothing. I think we all know what good financial behaviour is, but it seems to go out the window around December. We need to be financially responsible and financially smart throughout the year, but especially around Christmas and New Year, when money can fly out of your pocket at a pace.”

Sibiya said that your household budget should be able to withstand the test of the festive season considering that we have almost six weeks before the next pay day. Also, remember your January obligations and spend wisely: “When you draw up your budget for this time of year, you should allocate the appropriate funds to all the extra costs at this time of year. These could include items such as travel, gifts and entertainment. The most important thing is to stick to your budget! Always!” said Sibiya.

If you’re easily tempted and can’t withstand the shiny lights and music that comes with this time of year, you’ll need to put plans into place. If you are going

out for the evening, then only take a certain amount of cash with your for the night. Once your cash is done, so is your evening. At this time of year, you have to try to cut down where you can. The biggest culprit is shopping and spending time in malls, but you could stay out of the malls and do your shopping Online or spend time elsewhere.

“Do your planning before you start surfing the web and buy your presents and do your Christmas grocery shopping online, obviously with caution,” said Sibiya.

This will not only help with the temptation of spending more money at the shops, but it will save on petrol as well, as most online shopping sites provide delivery

of goods for free, or at a minimal fee. If you are going away during the holiday season, only do so if you have saved up for it. Don’t let your holiday be an impulse buy, as you’ll have to come home to a debt in the New Year.

“Most importantly, be strong willed,” said Sibiya. “Only you are in charge of your finances. Don’t spend recklessly with cash or card. Don’t open store accounts

because you can’t afford presents you think you should be buying and don’t start 2014 with bills and debt. Instead, break the debt cycle and manage your finances

responsibly. If you’ll be receiving a bonus use a portion of it to pay off some of your debt and start 2014 ‘on the right footing.’ Be Financially Smart.”