Financial damage control: Three critical 'don'ts' to start the new year
246 days ago
We've already passed the January half-way mark but the Janu-worry Blues are still eating away at many South Africans.
Certified financial planner Paul Roelofse lists three key components to managing the fallout of overspending during the festive season.
- Don't ignore the damage
Sacrifice is the name of the game if you want to make up for over-indulgence over the holidays.
Formulate an action plan early: Create a detailed budget and split your expenses into “must haves” and “nice to haves”.
Find extra cash in the latter category to pay off debt.
- Don't borrow any more
Review this decision only once you are back on your feet.
- Don't dip into your savings and investments as a quick fix
Work out how much you can allocate over time to get rid of your debt.
Set a realistic time frame with the understanding that debt robs you of potential savings
You're going to damage your future financial independence by dipping into your savings now and take away all the opportunity of creating some wealth down the road.Paul Roelofse, Certified financial planner
Get into a position where you start making provision for next January in the sense of putting aside some money for this stressful time of festive spending.Paul Roelofse, Certified financial planner
For more detail on these financial lifesavers, take a listen:
This article first appeared on 702 : Financial damage control: Three critical 'don'ts' to start the new year