Johann Rossouw | 10 December 2024
Johann is an Associate Financial Planner at Fiscal Private Client Services. He holds the Certified Financial Planner® accreditation and has a keen interest in personal finance and how financial markets affect our everyday lives.
Dezemba (not to be confused with 'December') is more than just a month for South Africans —it's a feeling, a vibe, and a way of life. After a long, challenging year, it's the time to relax, unwind, and celebrate before gearing up for a fresh start in January.
But just as every Dezemba celebration has its inevitable aftermath, JanuWorry isn't far behind. We all know the drill: after living your best life over the holidays, you wake up in January with about R52 left in your bank account, and somehow that’s supposed to last until the 25th.
While taking the time to wind down is important, so is setting yourself up financially for the year ahead. In this article, we'll explore practical tips to help you bounce back from the post-Dezemba hangover and start the new year on a stronger financial footing.
The first step to recovery is acknowledging the situation. Take a deep breath and review your bank statements. Identify any overspending and outstanding debts. This honest assessment will help you prioritise your financial goals.
Tip: Create a simple budget. Categorise your expenses (essentials, non-essentials, debt payments) and allocate your remaining funds. This visual representation will help you make informed financial decisions.
While it's tempting to continue the festive season splurge, it's time to tighten the purse strings. Evaluate your spending habits and identify areas where you can cut back. Consider reducing expenses on non-essential items like take-aways, shopping sprees, or unnecessary subscriptions.
Tip: Implement the 30-day rule. Before making a non-essential purchase, wait 30 days. This pause can help you determine if the item is truly necessary or just an impulse buy.
Take a closer look at your monthly expenses. Are there any subscriptions or services you no longer need? Can you negotiate better rates with your service providers, such as insurance or wi-fi? Don't be afraid to ask for discounts.
Tip: Many companies are willing to negotiate, especially if you're a loyal customer. Don't hesitate to call and ask for a better deal.
If you are struggling to make ends meet, consider taking on a side hustle. With the rise of the gig economy, there are numerous opportunities to earn extra income. From freelancing and tutoring to selling products online or renting out a spare room, explore your options and choose a side hustle that aligns with your skills and interests.
Start saving, even if it's a small amount. Every little bit counts. Set up an automatic transfer to a savings account, so you can consistently build your financial cushion.
Tip: Automate your savings. By setting up automatic transfers, you'll be less likely to spend the money.
To avoid the same financial stress next year, start planning ahead. Set aside a portion of your income each month for your Dezemba fund. This proactive approach will help you enjoy the festive season without the guilt of overspending.
If you're overwhelmed by your financial situation, consider seeking professional advice. A financial advisor can provide personalised guidance, help you create a budget, and develop strategies to improve your financial health.
Remember, financial recovery is a journey. It takes time and discipline. By implementing these practical tips, you can overcome the post-Dezemba hangover and set yourself up for a brighter financial future.
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