Herman Lombard, founder and executive director of financial services provider African Unity cautions against buying luxury goods on credit or store cards as interest rates are high and the accumulation of more debt will increase your monthly expenses in the future.<\/p>\n
\u201cWhile credit cards can be useful for a necessary purchase, with interest rates as high as 27.75 per cent, it is much better to save up over time for that big-ticket, luxury item.<\/p>
\u201cThat way, the impulse to buy may disappear and you may even find that you can do without that purchase,” he explained.<\/p>\n
Lombard added that if you do use a store card, then be aware of the costs involved and what this means to your monthly budget.<\/p>\n
Lombard said that by wisely spending and saving during the festive season, you will be able to enjoy everything the season has to offer while still staying within your budget.<\/p>\n
He suggests these budget-beating tips to help you cut down on unnecessary spending.<\/p>\n
\u201cIf you\u2019re lucky enough to receive a bonus, try to save a portion of it before spending it.<\/p>\n
\u201cThat way, you will have a head start to the new year and will have the funds to cover back-to-school expenses or buy something out of budget that you need,\u201d said Lombard.<\/p>\n
ALSO READ:\u00a0Know your weather warnings<\/a><\/h4>\nHere are some points to consider:<\/strong><\/p>\n\n- Budget<\/li>\n<\/ul>\n
Plan a budget that has \u2018wiggle\u2019 room built into it for unplanned expenses, like an extra gift or outing.<\/p>\n
A budget that\u2019s too tight could mean that you become frustrated and throw it out altogether.<\/p>\n
\n- Stick to your list<\/li>\n<\/ul>\n
Write a list of gift ideas for each person for whom you\u2019ll be buying and a budget for each gift and stick to it.<\/p>\n
\n- Opt for home-cooked meals<\/li>\n<\/ul>\n
Eating out is expensive.<\/p>\n
Instead of splashing out on a restaurant, make a special meal at home using food you already have.<\/p>\n
If you usually buy cakes from a bakery, try your hand at baking them at home instead.<\/p>\n
\n- Look for bargains<\/li>\n<\/ul>\n
December often abounds with bargains and sales, so take advantage of these money-saving opportunities by stocking up on gifts and decorations for next year.<\/p>\n
\u201cBe aware, however, that you can never save money by spending.<\/p>\n
\u201cIf the money is not in your budget, then no matter how good the deal, you will be worse off than if you don\u2019t make the purchase,” said Lombard.<\/p>\n
\n- Home is where the heart is<\/li>\n<\/ul>\n
With ever-increasing petrol prices and holiday rentals at a premium over the holiday season, many families are opting to instead stay at home and treat themselves to a few luxuries in the comfort of their own home.<\/p>\n
\n- Create new, less expensive traditions<\/li>\n<\/ul>\n
Outings don\u2019t have to be lavish and expensive to be memorable.<\/p>\n
Be creative in planning festive outings that are free or inexpensive and can become part of your celebrations.<\/p>\n
Picnics at the beach or in the park or a hike with beautiful views can be just as memorable as an outing to an expensive venue.<\/p>\n
\n- Secret Santa<\/li>\n<\/ul>\n
If your celebrations involve exchanging gifts, Secret Santa is a great idea for gift-giving.<\/p>\n
Rather than buying a gift for every family member or colleague, each person selects one other person for whom they will buy a gift.<\/p>\n
ALSO READ:\u00a0<\/strong>Tips to help you prepare for severe weather<\/a><\/h4>\nLombard explained the importance of checking over your budget directly after the festive season so that you are able to assess whether you managed to stick to it, where you could have saved and to make plans for paying back where you may have overspent as quickly as possible to avoid paying too much in interest.<\/p>\n
\u201cWhile the holiday season is a time for giving and for celebrating, it is important not to be tempted to spend funds that you don\u2019t have or to use money that would usually be used for protecting your family against risk, like insurance and medical-aid premiums,” he concluded.<\/p>\n
Hav<\/strong>e a story?<\/strong><\/p>\nContact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za,<\/a>\u00a0<\/strong>Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za\u00a0<\/a><\/strong>or Ashley Kiley (Journalist)\u00a0ashleyk@caxton.co.za.<\/a><\/strong><\/p>\nAlso follow us on:<\/p>\n
- \n
- Budget<\/li>\n<\/ul>\n
Plan a budget that has \u2018wiggle\u2019 room built into it for unplanned expenses, like an extra gift or outing.<\/p>\n
A budget that\u2019s too tight could mean that you become frustrated and throw it out altogether.<\/p>\n
- \n
- Stick to your list<\/li>\n<\/ul>\n
Write a list of gift ideas for each person for whom you\u2019ll be buying and a budget for each gift and stick to it.<\/p>\n
- \n
- Opt for home-cooked meals<\/li>\n<\/ul>\n
Eating out is expensive.<\/p>\n
Instead of splashing out on a restaurant, make a special meal at home using food you already have.<\/p>\n
If you usually buy cakes from a bakery, try your hand at baking them at home instead.<\/p>\n
- \n
- Look for bargains<\/li>\n<\/ul>\n
December often abounds with bargains and sales, so take advantage of these money-saving opportunities by stocking up on gifts and decorations for next year.<\/p>\n
\u201cBe aware, however, that you can never save money by spending.<\/p>\n
\u201cIf the money is not in your budget, then no matter how good the deal, you will be worse off than if you don\u2019t make the purchase,” said Lombard.<\/p>\n
- \n
- Home is where the heart is<\/li>\n<\/ul>\n
With ever-increasing petrol prices and holiday rentals at a premium over the holiday season, many families are opting to instead stay at home and treat themselves to a few luxuries in the comfort of their own home.<\/p>\n
- \n
- Create new, less expensive traditions<\/li>\n<\/ul>\n
Outings don\u2019t have to be lavish and expensive to be memorable.<\/p>\n
Be creative in planning festive outings that are free or inexpensive and can become part of your celebrations.<\/p>\n
Picnics at the beach or in the park or a hike with beautiful views can be just as memorable as an outing to an expensive venue.<\/p>\n
- \n
- Secret Santa<\/li>\n<\/ul>\n
If your celebrations involve exchanging gifts, Secret Santa is a great idea for gift-giving.<\/p>\n
Rather than buying a gift for every family member or colleague, each person selects one other person for whom they will buy a gift.<\/p>\n
ALSO READ:\u00a0<\/strong>Tips to help you prepare for severe weather<\/a><\/h4>\n
Lombard explained the importance of checking over your budget directly after the festive season so that you are able to assess whether you managed to stick to it, where you could have saved and to make plans for paying back where you may have overspent as quickly as possible to avoid paying too much in interest.<\/p>\n
\u201cWhile the holiday season is a time for giving and for celebrating, it is important not to be tempted to spend funds that you don\u2019t have or to use money that would usually be used for protecting your family against risk, like insurance and medical-aid premiums,” he concluded.<\/p>\n
Hav<\/strong>e a story?<\/strong><\/p>\n
Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za,<\/a>\u00a0<\/strong>Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za\u00a0<\/a><\/strong>or Ashley Kiley (Journalist)\u00a0ashleyk@caxton.co.za.<\/a><\/strong><\/p>\n
Also follow us on:<\/p>\n
- Secret Santa<\/li>\n<\/ul>\n
- Create new, less expensive traditions<\/li>\n<\/ul>\n
- Home is where the heart is<\/li>\n<\/ul>\n
- Look for bargains<\/li>\n<\/ul>\n
- Opt for home-cooked meals<\/li>\n<\/ul>\n
- Stick to your list<\/li>\n<\/ul>\n
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