DURBAN - CONSUMERS are warned to not give into the temptation of ‘being merry’ this festive season and end up dipping into their investments to boost festive season spending.
Product Portfolio at FNB Wealth and investments Sebastian Pillay said consumers need to make sound money management decisions that will help them manage their finances and stay committed to their short- term or long-term investment goals.
“While this time of year is a season for giving and creating lasting memories, consumers still need to keep an eye on their financial goals for the future. Consumers need to be frugal about spending and avoid dipping into their investments to boost festive season spending," said Pillay.
Pillay shared the following tips on how the consumers can avoid the temptation and maintain financial discipline:
– Set aside a budget for spending: To avoid the temptation, set aside a clear budget and maintain financial discipline. More importantly, the holiday season is fairly long and those who rely on a salary will only receive their next income late in January.
– Stick to your financial goals: Ensure that you stick to your short and medium-term goals throughout the holiday season. These goals need not be limited to your life but can also extend to your investments, such as a unit trust, money market fund, exchange traded fund, or tax-free savings or share accounts.
– Invest in yourself: It is worth noting that ‘investing in yourself’ is not only about eating healthily or exercising, but it’s also about managing your finances so that you can retire comfortably in your golden years. The journey to a comfortable retirement is never too early to start. Hence, it is always advisable to avoid touching your retirement savings for any reason apart from actual retirement. At the end of the year, it is also common for people to change jobs to pursue new life and career goals. This, however, should never be seen as an opportunity to cash in our retirement savings.
– Give a gift that will last: While we all look forward to lovely gifts, why not be creative this holiday season and consider investing in global exchange-traded notes (ETNs) from leading international brands for your loved ones? For as little as R10, you can gain access to and maximise investment exposure to top global ETN shares. A little goes a long way and will certainly make a difference in your loved one’s future.
He said consumers must challenge themselves to make wise money decisions so they can go into the New Year without any stress.
THE MERCURY