We all know that January is one of the longest months in the year. This is mainly because many South African consumers are paid either early or mid December. Teamed with family holidays, Christmas and celebrations in between, most of us are guilty of overspending during the festive season. It becomes difficult to say no, which can land us in financial trouble. 

This presents a larger issue for South African consumer finances. Here are a few tips to push through and make your salary last until January pay day. 

Try Avoid Taking Out A Loan

In many cases the easiest way out is to apply for a personal loan, payday loan or to increase credit limits. However, consumers need to consider the costs involved with taking out a loan or using some form of credit. The large costs attached to loans or credit are various fees and interest. These additional costs are settled within the repayment period but increase your total monthly debt repayments. 

Create A Mini Budget

Create a mini budget in order to make it through the last week before payday. A mini budget will allow you to plan ahead and allocate yourself and your family a daily spend limit. It will allow you to keep track of your daily spending and stretch your funds to the next payday (It’s also a great way of getting into the habit of using a budget each day). 

Avoid Using Your Savings

When our funds are being stretched over a long period of time, we tend to dive into our savings account in order to cover expenses. However, if you are considering to dip into your savings account, be prepared to replace the amount you used plus what you would normally contribute to your savings account on a monthly basis. 

Sell Items You No Longer Use

If you aren’t prepared to dive into your savings account or do not have enough to make it through the month, it may be a good idea to consider selling items you no longer need or use. This will allow you to use some of the money you made to cover your expenses during this period. Additionally, if you make some extra money, you can add it to your savings account. 

If you need assistance regarding debt consolidations or advice, contacts us for more information.