It is that time of the year when people are cashing in on stokvels, investments or getting their end of year bonuses. But there are people who, for whatever reason, have nothing but their December salaries to keep them going until their next pay day.
Drum chats to two financial experts who give tips on how people can tide themselves over until their next salaries in January come in.
Financial wellness expert Sinikiwe Ngcobo says things can get difficult when people have not planned in advance.
“This is a reality for a lot of South Africans and I would suggest that people write things down including the additional costs like money to travel back home or money needed for stationery,” she says.
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Sinikiwe has a few tips that people can use this December if they only have their salaries:
1. Write down a budget
2. Buy your big ticket items first, like groceries
3. See what expenses you can forego and divert those funds
4. If entertaining, have ‘bring and share’ events
5. Pause on automated savings to free up the cashflow
6. Shop around for bargains
7. Avoid taking loans
8. Do not default on contractual obligations
9. Have difficult conversations with family about skipping going home this year or as family coming over to bring a bit of groceries to help out
10. Plan ahead for the following year to avoid being in the same position in 2023
Financial advisor Melissa Weber says many South Africans are already in debt and they should not get in more debt to facilitate December luxuries or festivities.
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Melissa adds the people should pay their January rent and school fees in December to avoid spending the money and defaulting in the new year.
She shares the following tips for December savings and January planning:
1. Find free or cheap things to do in your city, like picnics
2. Do not go into debt for Christmas presents
3. Plan your shopping next year. Buy gifts during the year and lay buy school clothes in advance
4. Look at the smaller banks for savings because they have higher interest rates
5. Have food vouchers/stamps
