Credit Matters in the Media
Foschini Club Magazine - Holiday Article
Shopping pitfalls to avoid:
- The biggest thing ever, ever, ever to avoid is a SALE sign. If you didn’t need it before it went on sale, then you don’t need it when it goes on sale! Remember, buying something on sale which you don’t need – is not a way of saving money, no matter how much you try and convince yourself that it is.
- Avoid taking your credit card with you, if you have no intention of buying a planned, big ticket item. It’s just too easy to get side tracked into swiping that card!
- Avoid going shopping immediately after you get paid. At this point , all your finances still seem hunky – dory, because none of the essentials have been taken into account. Wait till all your debit orders have come off and till you have paid all the monthly necessities.
Where can you save money during this time:
- People often think that the saving of money has to be the literal saving of rands and cents. Yet our biggest savings often come from changing our habits with products and services.
- At this time of year, everyone is always offering lower prices and specials – even so, price around.
- Don’t only be price sensitive about big ticket items, remember that small savings on lots of different items in the trolley – all add up!
What to do about presents especially if you have a big family:
- Dont forget that everyone is going through these tough economic times and people will understand if you have to scale down on the type of gift given.
- I am not referring to your immediate family, but rather than buy every niece and nephew and brother and sister and all the in – laws, individual gifts - buy a gift for the family. Buy a gift for the family home from any one of the numerous home stores around.
- Never underestimate the power and sense of sincerity a personilzed gift invokes. Write a letter, send a card, buy something that may not be huge and commercial – but that will have special meaning to the person receiving it
- Girlfriends club money together for baby showers, bachelorettes parties and everything else in between. Do the same with Christmas gifts. A nice perfume, a beautiful piece of jewellery or a snazzy item of clothing, is more affordable when split a few ways!
- Eg. If you are a clique of 5 friends – Let each one give R50 towards every other persons gift – that way, EVERY friend will receive a gift to the value of R200, and you have only spent R200! Make it a fun experience, with everyone giving crazy ideas and searching the net and magazines for “different “ suggestions.
If you get a 13th cheque or bonus, what is the best way to use it without feeling deprived:
- The best way of using your 13th cheque without feeling deprived is not to spend it on yourself, but rather look at spending it on YOUR WELL – BEING.
- Spend the money from your 13th cheque that will make your life easier after the holidays. Use it for necessities
- Things that could lighten your burden considerably are – paying your rates and services for a few months in advance. You then don’t have the stress of worrying that services will be disconnected, and that monthly payment can be used for something else at the end of each month
- The same goes for school fees. Avoid getting that sinking feeling in your stomach when the governing body sends you those pink letters! If its within your means and 13th cheque, pay school fees in full.
- Use the 13th cheque to pay off slightly larger amounts, that you can claim a discount on for paying it in full.
- Speak to your creditors about getting better settlement balances on certain accounts if you settle everything immediately
- Pay the arrears on your accounts at the very least, if you cannot pay the account in full
What are common money mistakes people make over the holiday season:
- Too many people simply get caught up in all the hype created by stores and products and end up buying too many things they simply don’t need and worse, cannot afford.
- Often people have painstakingly and diligently paid their credit and retail cards to have little or no balance. But come holiday season all of these get maxed out again. I am not saying do not spoil yourself or your family. After a tough year, we all need our souls and ourselves to be soothed. But don’t buy things on credit, if you know you are going to have trouble making the repayments afterwards. Its not fair to you, your family or your creditors.
- Over the holiday season, people are also very often inclined to spend their very last penny. Try to put away some money for the start of the new year, which inevitably brings with it, the new school year – and this always cost money.
- People seem to concentrate on the luxuries in life over the holiday period, and tend to forget about the necessities. Its always best to see to the necessities first.