Are you receiving a little extra this December?

If you are lucky enough to be getting a thirteenth cheque or an annual bonus – congratulations! But before you start making wish lists, it might be a good idea to stop and think before spending it on a holiday, or other luxuries – whether for yourself or those you love.

Even if you are not receiving the 13th cheque this year, don’t forget about the possibility of a lump sum payment from SARS.  The 23^rd of November 2021 marked the end of the income tax filing season, and your final opportunity to edit or accept your auto-assessment. We encourage you to consider investing this money in your future.

The December holidays tend to make us behave with less caution when it comes to money. As much fun as you want to have while making new memories, try to remember that you do still have to get through January. If you have children, January can add additional financial pressure with the cost of new school uniforms, books, tuition fees and so on. It’s not called Januworry for nothing. It is also important to keep in mind the rest of the year or the years to come. In these trying times, many months are tough ones, with the rising cost of food, petrol, and electricity.

It might be worth it to take a minute to consider how valuable that gift, holiday, or outing really is in the long term. Here are a few ideas to help put a safety belt on your spending this summer.

Go easy on the gifts. Consider starting a ‘Secret Santa’ tradition where everyone draws one name out of a hat, and buys a gift only for that one person, with an agreed-upon spending limit attached. This has the added advantage that you will be getting a single thoughtful gift from someone in your friendship circle or family group rather than multiple token gifts. It also means spending less time in the frantically busy shops too. What’s not to like?

Local is lekker. We live in a remarkably beautiful country. There’s no need to travel very far to experience natural beauty. Similarly, your accommodation doesn’t have to be five-star! After all, if you’re on holiday, you won’t be spending very much time in your residence in any case. So, get out there and explore your province on a shoestring budget.

List your limits – and let others know. If you have a budget for the holidays, which is highly recommended, be sure that you share it with those you will be with and encourage them to support your planned expenditure. That way, everyone can prioritise what they most want to do. It will be far less stressful than trying to squeeze in everyone’s demands even when you know that you can’t actually afford them.

Save before you spend. Remember to save for your future, the more you save now, the more you will benefit from the power of compound interest. There are a variety of savings vehicles to cater to your specific goals. We encourage you to set up some time with an NMG financial planner to discuss what saving mechanism is best suited for your circumstance.