How residents can curb holiday spending

While the festive season is a time for joy and celebration, it can also bring unexpected financial burdens.

Tshwane residents are gearing up for a well-deserved break after a challenging year marked by rolling power cuts and rising living costs.

To help navigate the holidays without breaking the bank, Discovery Bank has shared the following tips for residents to ensure that the spirit of giving doesn’t lead to financial stress:

– Set aside funds for January expenses

According to Discovery, many employees receive their December salaries early, and it’s crucial to remember that essential debit orders for January will still come due.

The bank urges residents not to wait until after the holidays are over to see if they’ll have enough for the new year.

“Residents should list all expected expenses, including rent, utilities, school fees, and insurance.”

By setting aside this money now, they can spend their holidays with peace of mind, free from the worry of running into debt in the new year.

– Create a holiday budget

With a clear picture of their finances, the next step is to draft a holiday budget.

According to Discovery, “everything from essential food items to holiday accommodation is more expensive” during the festive period.

Once you’ve established your budget, be diligent in tracking your expenditure.

Whether it’s through a trusty notebook, a budgeting app, or an Excel spreadsheet, keeping tabs on your spending will help you stick to your financial goals and avoid overspending.

– Embrace creative saving strategies

Discovery suggests that a little thought, flexibility and creativity can save you hundreds of rands over the holidays.

Instead of spending on an expensive holiday, arrange shorter visits with friends and family.

This way, you can enjoy quality time together without the hefty price tag of a full vacation.

Buying consumables in bulk can also lead to substantial savings.

Think do-it-yourself (DIY) gifts or a Secret Santa arrangement to cut down on gift costs, and consider low-cost activities like outdoor hikes in the lush Pretoria Botanical Gardens or hosting a bring-and-braai at home instead of dining out.

– Be savvy with gift-giving

Gift-giving is a cherished tradition during the festive season, and residents can make it more budget-friendly.

Decide in advance what your budget will be for each recipient.

Start by setting a clear budget, withdrawing that amount in cash and leaving credit cards at home to avoid temptation.

Establishing a family or friend tradition of a spending limit can also foster creativity in gift-giving, encouraging thoughtful presents rather than extravagant purchases.

For those considering gifts for children, think long-term. A savings account or investment in their name is a valuable gift that can give them more every year, for years on end.

– Use Bonuses Wisely

For those fortunate enough to receive a year-end bonus or 13th cheque, Discovery advises that it’s important to plan for your future first.

Resist the urge to splurge and prioritise saving and investing.

Consider allocating a portion of this extra income towards paying down debt or boosting your savings and investment accounts.

The benefits of such decisions can be substantial, transforming short-term gains into long-term financial security.

By planning ahead, budgeting wisely and embracing creativity, residents can enjoy the festivities while safeguarding their financial futures.

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