Have a wealthy holiday

Q: It’s so tempting to blow my year-end bonus on a festive season splurge, but come January I end up having to borrow money from my sister! How do I make my money last — without being a Scroogeo

A: Firstly pat yourself on the back. You deserve the holiday that lies ahead, your bonus and your salary. A stress-free and financially fit holiday is within your reach. By following a couple of simple steps, you should still be able to spend your hard-earned currency wisely in December, without resorting to dry toast for supper by January:

1. Minimise impulsive purchases
From the moment you read this article, try and minimise impulse purchases and unnecessary expenses: gossip magazines, expensive restaurant lunches, chocolate indulgences in the afternoon. This way you’ll not only be saving money, but keeping your body in shape too!

2. Stick to your monthly budget
This includes continuing to contribute to your long-term investments. You should be investing regularly into a unit trust to provide for your retirement. Patience and discipline is important here; and it is only if both these virtues are adhered to that the compound effect of your investment returns will work towards you achieving your financial goals.

3. Be strict with your cash
Place surplus funds (like bonuses) into a money market investment or a savings account each month. Because this is a short-term investment your money will not be exposed to volatility in the market nor will you have to pay upfront fees. The low annual fees and/or charges will not take a bite out of your initial capital. With this money out of your everyday transactional account, you won’t be tempted to spend it!

4. Maintain your long-term investment plan
Do not be tempted to cash in a long-term investment to fund a holiday. You may think you’ll replenish it at a later date but the truth is, when that date arrives, there are often other expenses that take priority!

5. Pay cash
Don’t be tempted by an overdraft facility. The interest rates on overdrafts are excessive, and large purchases on credit that take a while to pay off will end up costing you a lot more than the initial purchase price. This applies to every account — from your credit card and cheque account, to your clothing and store accounts. If you do have to go into overdraft, pay off the debt at the first opportunity. Your 13th cheque might come in handy here: use it to squash debt.

6. Festive season gifts
This is your chance to use your creative flair. Spend more time — rather than money — putting together gifts that are cost effective. Alternatively, agree with your family/friends that you’ll all buy gifts costing less than R100.

7. General household expenses
Be wise with the money you spend on your household, especially food. It’s often the obvious things we forget that can save money. Resist the temptation to buy convenient pre-packaged foods or take-aways, for example. Purchase fresh foods and cook in quantity so you have several meals to last a few days. This is a healthier way to eat too –
perfect for bikini season.