Know Your ABC’s For Festive Season Financial Planning
It is with a “Dashing through the Snow” whilst “Dreaming of a White Christmas” that we are frantically trying to work our way through the festive season. Holiday activities for children, shopping for family feasts and buying presents to ensure that “Santa Claus is coming to Town”, all take its toll on our bank accounts.
Know your ABC’s for financial planning over the festive season to ensure that your hard-earned bonus or savings does not melt away in the scorching South African summer sun.
A – Account: Keep the money allocated for use over the festive season in a separate bank account to ensure that you keep record of what you spend. This will also help to monitor how much you have left and to curb overspending.
B – Budget: Draw up a budget to determine how much you have available and how much you need. Start with the “must-have” expenses: monthly running expenses, back-to-school expenses, school fees and other essentials. Remember to allocate an amount towards savings. Lastly, calculate what is available to spend over the festive season and plan how to use this amount.
C – Convenience: We all want to spoil ourselves, but convenience comes with a hefty price tag. Put heart into your gifts this year and give self-made or home-baked gifts. Walk short distances instead of taking an Uber. Prepare meals as a fun family activity rather than buying pre-prepared meals.
D – Debt: Do not borrow money to buy gifts or other non-essentials. Do not spend money that you do not have.
Avoid having a “Blue Christmas” this festive season. Do not be taken for a sleigh-ride by giving in to all the non-essential financial demands. Instead, know your ABC’s for financial planning this season to ensure that your bank account stays intact for longer than just “The 12 Days of Christmas”.
Dean: Financial Planning & Insurance
13 Dec 2019