into better financial shape by structuring personal finances ahead of
the festive season and the New Year.
Ester Ochse, Channel Head at FNB Financial Advisory says how people
manage finances over this period could impact their financial
wellbeing over the next few months, going into the New Year.
"Some people might use this period to tighten financial control,
others will pursue investment opportunities but you also have people
who will feel that it's the best time for them to spend," she says.
"The reality is that there is no wrong or right decision because
everyone is influenced by their financial position. Regardless of what
anyone does, there are important financial boxes to tick to ensure a
better financial future."
Save for education
Whether you have kids in pre-primary, primary or high school – your
education costs are likely to go up over the next 12 months. By how
much is the main question, but it is safe to factor some kind of
increase in your financial plans.
"Parents could easily get overwhelmed if there are no proper plans to
keep up or stay ahead of education costs. Hence the need to plan in
advance, starting with upfront costs like registration, stationery,
uniform and other essential items," says Ochse.
Plan your festive season expenses
"Festive season expenses can get out of hand if not kept in check -
where possible, start buying some of your family gifts now and stock
up at a pace suitable to you. This will help you avoid the impulsive
spending habits that are associated with the festive period.
"If plan A doesn't suit you, work out roughly how much you'll need
over the festive period and separate that budget from the rest of your
money - this requires a lot of discipline," she adds.
Boost your cash reserves now
Every New Year brings its own challenges and opportunities. From a
financial point of view, it's much easier to capitalise on
opportunities if you have cash reserves, such as an investment account
or a savings account. Cash reserves will be very handy should you need
to cover emergencies or unforeseen expenses.
Ochse concludes by saying, "Even though interest rates have been flat
over the last few months, consumers are not yet out of the woods
because the overall state of the South African economy remains fairly
delicate. The cost of living is still relatively high, with more food
prices predicted for the remainder of the year.
"This is why it is critical to keep a tight budget in order to be
prepared for whatever eventuality. While no single individual can
control economic activity, how one reacts to such activity is 100%
within their control."
