Everyone loves overspending but hates the financial hangover that happens in January.
“The festive season can be a time of both celebration and smart financial decisions. We’ve all been there, overspending in December and then scrambling in January. It’s fun in the moment, but that financial stress is something we can avoid with a little bit of planning,” say Ayanda Majola and Kagiso Tloubatla, co-founders of investment company SV Capital.
They advise:
- Change your mindset — draw up a budget for December that includes investing some money, especially if you get a bonus;
- Set a cap on your spending and make a conscious effort to keep it. If you have any money left over, invest or save it;
- Being careful with money doesn’t mean you have to give up gift giving, but give an investment that will deliver returns over time;
- Set up automatic investments and savings before December, so you can’t change your mind; and
- Take a look at your budget early and cut out unnecessary expenses, so you put yourself on a good financial footing in January.
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