Don't end the festive fun before it begins
November 2010It may seem almost impossible to believe but the festive season is almost upon us and with it, the season for giving and receiving gifts.
The exuberance of the hugely successful 2010 Fifa World Cup saw South Africans spending money on Bafana Bafana T-shirts, Vuvuzelas and, of course, the football matches themselves. The question now is - how do South Africans financially manage what will effectively be two festive seasons in one year?
According to Melody Redman, general manager of Budget Insurance Brokers: "An effective budget is sensible and important at this time or year. The tougher economic climate, coupled with the large amounts of money spent in June and July this year means that consumers may have much less disposable income than they anticipated."
Tips for a festive season budget
Shopping for gifts doesn't have to lead to financial stress. Learn how to budget for your holiday gift spending, and make this the year that you finally come in on (or under) budget.
- List whom you want to shop for, and see if you can cut down your list at all.
- Review your finances to determine how much you can afford to spend on gifts.
- Look over your gift list, and decide how much you would like to spend on each person. Then, add up the expected spending for all gifts, and make sure it does not exceed the gift budget that you established in step two. Rework your figures if necessary.
- Brainstorm novel or possibly home-made gift ideas.
- Track your spending throughout the season. As you purchase gifts, note their cost.
- Tweak your budget to cover any instances of overspending. Don't panic if you overspend on a gift; just scale back your spending on another present to make up for it.
- If you plan on using your credit card to buy gifts – be prudent and don't get yourself into the debt trap.
Insure your gifts
It is important that all festive season gifts are listed on your short-term insurance policy.
"Jewellery, DVDs and techno gadgets like iPods and Playstations are very popular festive season gifts. But, unfortunately these kinds of items are also very marketable for criminals so they have a high risk of being stolen," Redman says.
"That's why it is important to update the home contents or portable possessions section of your short-term insurance policy to include the value of any new items you may acquire this festive season. Whether it is a gift from someone special or something you bought yourself with your much-deserved bonus, get it covered," says Redman.
Managing your money this festive season does take a little thought and effort, but by using just one hour wisely you can save yourself a lot of money and a lot of financial pressure in the new year.
