NOVEMBER 2022: South Africans between 18 and 65 will spend an average of R 5 606 during the festive season. Additionally, based on Statistics SA’s mid-year population estimates, working-age South Africans are expected to pump R204 billion into the economy in 2022.
In September 2022, the average nominal salary reached R15 063, up from a revised R14 711 in August 2022, according to Bankserv Africa’s latest index. In essence, the R5 606 average expenditure for the festive season is more than a third of one’s salary.
Often called the “silly season”, this is once again the time of year when smart spending should be emphasised. As the holiday season begins, everyone looks forward to spending time with loved ones and making the occasion memorable. However, holiday bliss comes with a price tag that exceeds our means. When January comes around, consumers often find themselves in a rabbit hole because they tend to buy impulsively, do not budget adequately, and abuse their credit facilities.
Due to Christmas, Boxing Day, and New Year’s festivities, people tend to overspend during the December holidays. Whether purchasing gifts for loved ones, taking destination holidays, or planning road trips, it means investing in entertainment and road trips. Ultimately, it all comes down to cost. Whether you can afford it or not, these are costs you should consider. It is not uncommon for consumers to turn to credit cards or other means, such as loans to secure their desired vacations when their salaries or bonuses don’t stretch throughout the festive season. With the festive season just around the corner, CreditSmart Founder and Managing Director,Wikus Olivier, has provided six Festive Finance Tips to ease financial concerns.
● Stick to your budget.
● Stay away from making bad debt.
● Do some careful financial planning.
● Get your mindset in the right place by committing to not overspending
Stick to what you can afford.
Save your bonus or pay off some of your debt.
He explains, “Sticking to a budget is so important, especially now with inflation being as high as it is. Don’t be that person paying off his December holiday for the next 24 months. Remember that what you do during the holidays will set your starting point for the new year. If you dug yourself into a financial hole during the festive season, you’ll be demotivated going into the new year.”
“Rather do some careful financial planning before the silly season starts. Get your mindset in the right space by committing to not overspend or get caught up in the hype, especially on days like Black Friday. Stick to what you can afford, even if it means staying home this year. If you are lucky enough to get a bonus, take the opportunity to move your finances forward by saving, paying off your debt to improve your credit score, or just building a surplus so you don’t have to live hand-to-mouth,” continued Wikus.
If you find that you’ve become reliant on debt, CreditSmart has the solution to help you take back control of your finances. CreditSmart can assist you by combining your debt into a singular, affordable payment to free up your cash flow and provide you with the relief you need to truly enjoy the festive season without your financial position weighing you down.
Check out CreditSmart’s tips and advice for more information at https://fb.watch/gRBXe2z2T6/or visit the brand’s YouTube page
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