5 Ways you can stretch your rands over the festive season

South African consumers have been facing tough times due to recent increases in fuel prices as well as rising interest rates and inflation.

These price hikes coupled with the spending that consumers will be doing during the festive period mean you need to practise good money management to stretch your rands.

A budget is a plan to help you with your monthly or weekly spending. It will take into account your current and future income and expenses as well as create room for you to start saving.

Sebastian Alexanderson, founder and debt counsellor at National Debt Advisors, says: “When you budget, you know exactly where all your money goes, where you can make adjustments to save even small amounts, and also how to effectively save and leave enough money for unexpected expenses and emergencies.“ If you are unsure about how start a budget, there are online templates available.

It might be tempting to use credit or a personal loan to buy something extra special for your loved ones. But try to keep your gift spending within the limits you can afford. Going into debt will be a burden on your family in the long run.

Nomi Bodlani, head of strategic markets at Allan Gray, says that by becoming financially savvy you will start making financially responsible decisions and take control of your future. If you want a better grasp of financial matters or improve your understanding of financial terms, there are numerous online courses you can do. Your bank or financial institution may also offer financial literacy courses.

With the rising cost of petrol, one thing you can do is reduce your petrol consumption. You can plan ahead by doing things such as leaving for work earlier in the morning to avoid traffic congestion, and planning your shopping trips so you can get everything you need at one location instead of making multiple trips to different shops. Planning what gifts to buy for whom and doing your festive-season shopping early will not only save you money; it will ensure that your end-of-year festivities with family are relaxed and stress-free.

Justin Asher, head of marketing and strategy at upnup, says saving can seem like an impossible task to people who have never saved before. You can start by putting aside small amounts of money in a savings fund every month. As your financial situation improves you can increase your monthly contribution to the fund. It is important to put the savings contribution aside before you take care of other expenses.