Wise money management

The South African Savings Institute, the National Credit Regulator and debt counselling firm Octogen have the following advice to ensure you do not start the new year with a financial roadblock:

* If you did not save, do not borrow to spend.* If you did not budget for a festive season holiday, stay at home.* Give your children money boxes to teach them the importance of saving from a young age.* Avoid buying on impulse and resist tempting ‘sale’ signs in stores – when you see ‘sale’, think ‘save’ instead.* Budget for next year’s school expenses, such as fees, stationery and uniforms, before you allocate money to spend during the festive season.* Draw up a budget to determine what you can afford to spend on entertainment and presents. Stick to the budget at all costs.* Do not be drawn in by ‘no deposit’ deals on furniture or motor vehicles, because these deals often end up costing you far more in interest repayments over the long term.* Save throughout the year to pay for year-end holidays and parties.* Focus on paying off your existing debt before taking on additional debt. Your home loan repayments should be your top priority.* If you are having problems meeting your debt obligations, speak to your creditors to try to negotiate a repayment schedule or consult a debt counsellor.* Check that you can afford your debt repayments and spend wisely so that you start the new year on a sound financial footing.- iol.co.za