Yes, it is almost that time of the year again… a time for joy and celebration.  The word “celebration” can almost be used as a synonym for spending.  We all penny pinch throughout the year in order to enjoy a well deserved holiday.  Unfortunately this is a vicious cycle that repeats itself year after year.

With continues increases in the cost of living, we all have been forced to tighten our belts.  It is always astonishing to see how consumers are governed by advertisements encouraging further debt.  Deemed as “Silly Season”, the festive period’s excessive spending leads to a financial hangover in January.

To counteract the problem, try planning ahead and establish how much credit facility you intend utilizing during the festive period.  The National Credit Act has cut down on financial institutions granting easy personal loans.  Should you qualify for a personal loan, verify your monthly payments before signing on the proverbial dotted line.

Avoid swiping your card for unnecessary items.  Rather work with cash.  Debt payments should be kept to a maximum of 30% of your net income and existing accounts should be settled before spending on luxury items.  Avoid penalty and interest charges by settling your accounts prior to the due date.  Nobody enjoys an empty wallet, but remember to use discretion when spending your hard earned money.  Avoid turning short term debt into long term debt to increase your cash flow.  Differentiate between wants and needs…if you don’t need it, don’t buy it.

Budget carefully in order for you, and your family, to reap the long term benefits associated with the wisdom of controlling your spending urges.

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