Before you go crazy this Christmas season, let's just check in with reality to avoid waking up the new year with the equivalent of a financial hangover.
Right now (October 2013) the rand is losing value at a record rate which means not only will everything cost more, interest rates are edging upwards and inflation is taking hold… what this means in plain english is that you “the average joe” are completely screwed if you don't start planning ahead for some pretty tough times in 2014.
We're not saying the party is over, we're just saying party less! So with that said, here are our top tips to survive the definite tough times ahead in 2014 (use it don't use it):
OUR TOP 8 TIPS:
- Setup a budget and stick to it.
- Fix the interest rate on your bond now.
- If you have any spare cash pay off your credit cards now.
- Don't use your credit cards this holiday season.
- Avoid buying stuff you don't absolutely need.
- Do not take money out of your access bond unless it's an emergency.
- Start eliminating unnecessary expenses.
- Consider downsizing your lifestyle
If you think some of these are “drastic steps” consider for a second what will happen next year you can no longer afford your bond repayments, or the banks start cancelling your credit cards and calling in the loans, because these are all possible realities if you don't act now.
2014 could be one of the toughest financial years we've ever seem, so make sure you keep both feet firmly planted on the ground this holiday season and you grip firmly on your purse strings.