Be wise with your bonus

Some VERY wise words from an extract of a press release I received today

The festive season is upon us again. The spirit of jubilation has started filling the air as many consumers prepare to receive their 13th cheques.

However, if you do not plan carefully on how you are going to use your hard-earned 13th cheque cash, you will be indirectly planning to be broke in January, says CEO of the National Debt Mediation Association (NDMA), Magauta Mphahlele.

She adds that you must keep a cool head over this Festive Season.

“Though there might be emotional, marketing and social pressures to spend big monies during the festive period, try to filter these pressures out of your life by drawing up a budget,” says Mphahlele.
 “The budget should be a true reflection of your Festive season income and how you should spend it wisely so that it does not result in you having to seek loans to cover your expenses,” she says.

“A large portion of your budget should be allocated to necessary items like food, school uniform, debt, transport and emergencies. An insignificant part of your income should go towards entertainment,” says Mphahlele.

“You must make the drafting of budget part of your culture and you must not backslide on this habit,” says Mphahlele. “If you make budgeting a habit, you could significantly improve your cash flow due to the monitoring of spending patterns,” says adds.

The association warns consumers to remember that after you receive your December income, your next pay will come at the end of January – a month that has its own school of expenses.

Tips to be prudent with your spending this Festive season come when the inflation stands at 5.7%. The price of petrol this month leapt to a record high of R10.60 compared to R8.29 this time last year.

“High inflation and fuel prices threaten to erode the purchasing power of many consumers and it is clear that this festive period consumers should spend wisely. Those who fail to do so, might end up unnecessarily being forced to take additional credit,” says Mphahlele.

Tips to save this festive season:

Ø    Buy gifts only for close family and friends that are not expensive and would last for a long time. Where possible make the gifts yourself. This can be a fun family activity.

Ø     Rather entertain friends and family members at home and ask guests to chip in salads and beverages;

Ø    Use your bonus to trim your debt burden by paying off existing debt so that you can start the New Year on a clean slate; and

Ø    Try to buy everything at once when going out to shop in order to save on travel costs.

Ø    If going on holiday choose accommodation where you can book in as a group and share the costs.

ISSUED BY: Fezile Africa
Bullion PR & Communication
Tel: (011) 803 3615
Cell: 083 386 0839
E-mail: fezile@bullionpr.com
Website: www.bullionpr.co.za