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Only three salary cheques remain for many South Africans to cover costs associated with the lead up to the Christmas, as well as New Year. During this traditional period of excess, it is crucial that you correctly plan your spending and stick to a tight budget, to help cut down on last minute splurges.
This is according to Kevin Hurwitz, CEO of leading digital finance company, Wonga.com South Africa, who says that many South Africans tend to significantly overspend during the festive holiday period. “In addition, since most people get paid early in December, it means that January can be a very long and financially stressful month. This is why consumers need to take control of their finances sooner rather than later, no matter how much they earn, or spend.”
Here are his tips to avoid debt this Festive Season:
1. Don’t wait until January to prepare a new budget! Start now by drawing up a basic budget in order to find out what state your finances are in (good or bad), outlining all regular costs, no matter how small. Many people simply do not realise how much they spend every day of the month and it’s only when they’re forced to write it all down, that they see how many things they could cut out, in order to spend less and save more.
2. Make adjustments to your daily spending as soon as possible. For example, if you buy a R15 cup of coffee every work day, that works out to R75 a week. There are 52 weeks in a year, but let’s say you work for a full 46 weeks (factoring in things such as leave days, public holidays and sick days) - you are still spending R3 450 a year on fancy coffee - that’s a lot! Especially if you and your family are facing a bleak Christmas or Festive Season.
3. When you need to purchase goods over the Festive Season, plan your route through a shopping centre or supermarket. Retailers try as hard as they can to get you to buy things you don’t want (or need) during the holiday period – plus it’s easy to get sucked into buying something that’s on ‘promotion’. The rule is: If you don’t need it, it’s not a great offer!
4. If you’re ahead of the curve in terms of shopping, you won’t get caught making last minute purchases. If you plan in advance you can compare prices on items (try shopping online for product discounts or seasonal offers), to make sure you get the best deal possible.
5. Don’t forget to budget for January expenses such as school uniforms and fees.
6. Just as consumers feel the pinch towards the end of the year, so do fraudsters. So during the holiday period, more than ever, keep your personal information secure and do not share ID numbers, or bank account information with people or companies that you have never heard of.
Hurwitz says that Wonga traditionally services an increased number of customers during December and January. “As a responsible lender, we are serious about not wanting to place any additional financial strain on customers who are already feeling the pinch. We provide a short-term option to short-term cash flow problems and are not a customer’s last resort.”
This is according to Kevin Hurwitz, CEO of leading digital finance company, Wonga.com South Africa, who says that many South Africans tend to significantly overspend during the festive holiday period. “In addition, since most people get paid early in December, it means that January can be a very long and financially stressful month. This is why consumers need to take control of their finances sooner rather than later, no matter how much they earn, or spend.”
Here are his tips to avoid debt this Festive Season:
1. Don’t wait until January to prepare a new budget! Start now by drawing up a basic budget in order to find out what state your finances are in (good or bad), outlining all regular costs, no matter how small. Many people simply do not realise how much they spend every day of the month and it’s only when they’re forced to write it all down, that they see how many things they could cut out, in order to spend less and save more.
2. Make adjustments to your daily spending as soon as possible. For example, if you buy a R15 cup of coffee every work day, that works out to R75 a week. There are 52 weeks in a year, but let’s say you work for a full 46 weeks (factoring in things such as leave days, public holidays and sick days) - you are still spending R3 450 a year on fancy coffee - that’s a lot! Especially if you and your family are facing a bleak Christmas or Festive Season.
3. When you need to purchase goods over the Festive Season, plan your route through a shopping centre or supermarket. Retailers try as hard as they can to get you to buy things you don’t want (or need) during the holiday period – plus it’s easy to get sucked into buying something that’s on ‘promotion’. The rule is: If you don’t need it, it’s not a great offer!
4. If you’re ahead of the curve in terms of shopping, you won’t get caught making last minute purchases. If you plan in advance you can compare prices on items (try shopping online for product discounts or seasonal offers), to make sure you get the best deal possible.
5. Don’t forget to budget for January expenses such as school uniforms and fees.
6. Just as consumers feel the pinch towards the end of the year, so do fraudsters. So during the holiday period, more than ever, keep your personal information secure and do not share ID numbers, or bank account information with people or companies that you have never heard of.
Hurwitz says that Wonga traditionally services an increased number of customers during December and January. “As a responsible lender, we are serious about not wanting to place any additional financial strain on customers who are already feeling the pinch. We provide a short-term option to short-term cash flow problems and are not a customer’s last resort.”
