Guest Contributor | Feb 27, 2024 | 0
Saving tips to get you through the festive season
By Erastus Tshatumbu, FNB Namibia Head of Investment.
The festive season is finally here, and most people are looking forward to finally spending much-needed time with their families as well as getting in some long-overdue rest.
“It is a joyous time of the year when people exchange gifts, travel, and spoil themselves with one or two expensive purchases. However, just because it’s the festive season, does not mean that your budget should go out the window, you should remain cognisant of your spending to come out strong and avoid Janu-Worry,” said Tshatumbu. He further advised people to ensure they get through the festive season financially by following the easy tips below.
Save money now for your January expenses
Many people get paid early in December, creating the impression that you have more money to spend, however, that is not the case because you still have debit orders for December and January that you need to pay. So do not wait until after your holiday is over to see if you’ll have enough money for the New Year. List all your December and January expenses, including your home or car repayments, utilities, school fees, insurance, regular saving,s and so on. Put money aside for those essentials and do not use it for anything except what it is meant for. This way, you can enjoy your time off in peace, knowing you won’t run into debt in January.
Plan your holiday budgeting
After putting aside money for your January expenses, you can see how much money you have left for holiday spending. Remember that over the festive season, everything from essential food items to holiday accommodation is more expensive. So do not underestimate a holiday budget. Once you have set a budget, base your plans on it. Then keep track of your spending by writing it down, using an app or Excel spreadsheet.
Be smart with your bonus
If you are lucky enough to earn extra money in the form of a bonus or a thirteenth check, do not plan to spend it immediately. It is important to pay ‘future you’ first, so it may be a good idea to contribute a little extra to your investments during this period. Take some time to consider where you can best allocate the extra funds, either to save your money, like paying off debt faster, or earn you money like our Call Account, Money Maximiser, and Flexi-Fixed for your different needs.
Remember, two key practices for financial independence are saving and investing. Saving involves being mindful about how you spend and becomes an important aspect of life when you entrench it in your daily and monthly budgeting. Not only does it come with interest-earning benefits, but it also constitutes capital preservation for any goal you might have. Saving also instills financial discipline to not deplete your hard-earned income. On the other hand, investing refers to putting money into financial markets schemes, in order to earn great returns, and staying invested long enough for your money to compound and your wealth to grow. Do both consistently, and you will be one step closer to achieving financial freedom.
Save on travel
December holidays are the times that we love to get away and unwind, but one should find cost-effective ways to do this. Go camping or glamping, there are many options available for both. You can also travel in larger groups to capitalize on group lodging discounts and carpool to save money on petrol costs. Alternatively, you can postpone your travels to a different time of the year when places are not charging high holiday prices.
“With that, we hope that you have a wonderful festive season and are able to put some of these things into practice, just remember this, whatever your financial goal, FNB can help you achieve them,” concluded Tshatumbu.