Khwezi Jackson, 10X Investments Employee Benefits Consultant, shares some tips about how you can stay financially afloat and ensure that you don’t set yourself up for financial misery in January.
Invest some of your bonus
If you are, one of the privileged few who are receiving a bonus, don’t blow it all at once in December. Rather pay down some your debt, or make your money work for you by investing all or some of your bonus. While this won’t necessary feel as great as splurging all of your money during the holidays, the financial rewards in the future will be much greater.
Deciding what to invest in is the fun part of this plan. Speak to your financial adviser or do your own research to help you make a good choice. The internet contains a lot of information about the available options.
Learn to say no sometimes
It may be tempting to mark the attendance register for every social activity in December but, chances are, it will not work out well for your finances. Rather than going with the flow to every social event, have the discipline to sit out some events. Focus on good company and quality experiences, this will help you avoid the mistake of over-extending yourself and your budget.
Budget through the holidays to survive through January
Every year, most of us tell ourselves the same thing when we find ourselves broke in January: Never again will I be financially irresponsible. This year I will be better.
Why don’t you make this the year you do things differently and keep yourself financially accountable. Stick to the holiday budget and don’t go down the old route that leaves you in the same financial mess every year. Remind yourself about your last financial hangover last ‘Januworry’ as motivation.
Avoid debt
Don’t take on unnecessary debt in order to keep up with your friends and family.
Taking out a loan or maxing out your credit card may seem like an easy fix to an urgent problem, but rising interest rates will make this a costly mistake. Most of us are struggling, but rather say no to temptation and plan carefully with the money you have. Going into next year with debt from holiday excess is the last thing you want.
The points above all have a common thread, which is planning and preparation. Whether it’s just for the holidays or long-term financial goals, it is very important to plan so that you know where your money is going.
The end of the year is always a good time to take stock and see where you are financially. Make a budget and a financial plan for next year. You will be surprised how easy it is. Imagine that at this time next year you have savings to spend over the holidays. Many South Africans are one decision away from complete financial ruin; make the decision that it won’t be you.
The content herein is provided as general information. It is not intended as nor does it constitute financial, tax, legal, investment, or other advice. 10X Investments is an authorised FSP (number 28250).
