1 December 2021

Written by: Nonjabulo Sikhakhane, MBA alumni  

What comes to mind when you think of the festive season? A lot of people may say family, friends, food, gifts, holidays and lots of spending. The festive season has become the one period in the calendar year where people are allowed to make bad financial decisions all in the name of being festive. Instead of joining in on the festive season spending why don’t you work towards a festive saving?

The increasing fuel prices, job losses and inflation have been some of the challenges people had to deal with amidst the pandemic which is another reason why managing your spending during this season is important.

Three things to remember when drawing up your festive season shopping list;

1. Have a budget and don’t let the Christmas lights impair your vision towards your 2022 financial goals. A budget is sometimes viewed as a limitation however it should be seen as a tour guide that helps one navigate through the Holiday Season and Festive spending.
2. Don’t fall into the trap of spending money now, on marked down items you may need in the future all for the sake of Black Friday deals. When you feel the urge to splurge think of the time value of money. Don’t spend money today on something you may need in the future just because it’s a few rands cheaper. Your money has value now because it affords you the opportunity to spend on what you need today.
3. Spending time with family and friends does not require an expensive dinner or outing. Home cooked meals, board games and more affordable family activities will still bring you joy.

As the year draws to a close let us approach the silly season with caution and prioritize saving over spending so we can unwrap the gift of saving in the New Year.