Money saving tips

With extra cash in their pockets from a 13th cheque or Christmas bonus and generally being in a giving mood, overspending during the festive season is easy because of the year-end celebrations and excitement.

If consumers want to begin the New Year in a financially sound position, they should be aware how they spend money over the period, according to the Manager of Credit Information and Research at the National Credit Regulator (NCR), Louisa Hetisani.

"December is no different from any other time of the year. Remember, you do not have more money to spend other than your monthly salary. Your bonus (if you get one) should be used to pay off debts and other expenditures," she said.

Statistics show there are close to 20 million credit active consumers and they owe more than R1 trillion in mortgages, vehicle finance, credit cards, store cards, personal loans, short term loans, pension and insurance-backed loans.

Tips for consumers include doing a budget for the festive season, prioritising home loans or rents, shopping around for cheaper options, avoiding unnecessary credit and staying away from those very appealing ‘buy now pay after three months’ offers. The budget must include all debt, rent, electricity, water, insurance, transport, gifts, entertainment, etc.

Be proactive and double-up on your regular payments such as mortgage or rent, lights and water. That way you will be able to afford costs such as school fees and uniform purchases which must be paid for at the start of the New Year. When shopping, use a list and stick to it. Create a run-down of the stores you’ll hit and keep focused on what you're there for.

You can make it a family project to make gifts for friends and relatives. Bake biscuits, draw a picture, write a poem or sew a cushion cover. These all cost much less than buying something in the shops and will mean more.

Entertain at home and maybe ask guests to bring something for the meal so you share the costs of your festive entertainment.

Waheeda Peters