CAPE TOWN - Consumers are spend-thrift during the holiday season. However, you can save and avoid splurging your entire paycheck and bonus this holiday.
Investment analyst at Absa Wealth & Investment Management, Chris Gilmour said in April this year that SA’s junk status means that consumers can expect interest rates to increase.
In addition to this, according to a report by Statistics South Africa (Stats SA), nationally 48 169 debt summons were issued, valued at more than R350 million.
Consumers are therefore urged to cut down on spending habits and save.
Take a look at five simple financial tips to use this holiday season.
1. Set a budget
Having a financial plan in mind helps to decipher what you want to buy and how much it will cost you. A budget forecasts your spending but also shows you what you can and cannot afford. Also, to avoid impulse to spend unnecessarily, leave your credit cards at home.
2. Curb the impulse
Consumers may easily be inclined to purchase goods on impulse. In order to avoid doing this, try to delay the purchase by counting to 30 and moving yourself out of the aisle. This will place the item within far reach and your attention will ultimately be cast away.
3. Seperate savings account
Especially for the holidays, try to keep a seperate savings account. This will allow you to only tap into finances that is allocated to holiday gifts and expenses. Therefore, your savings will not get mixed with your day-to-day cash. This also limits your holiday spending.
4. Put aside holiday savings
Try to set aside a fixed amount of money per week or month, specifically for holiday spending. If you set aside a R100 each week, you will have a R400 by the end of the month. With this money, you could invest it in a savings account and save even more during the holiday season.
5. Look for discounts and coupons
Coupons can save you money off your shopping purchase. Before you go to do your shopping, search what existing coupon or promo codes the shop has on offer. You will be surprised by how many retailers have promo codes.
- BUSINESS REPORT ONLINE