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Start saving your salary now to make it through the festive season unscathed

Start saving your salary now to make it through the festive season unscathed

The festive season is fast approaching, and this time of the year while jolly and fun, really digs into everyone’s pockets.

So, with November’s salary, you have to pay bills for the month and also cough up for Christmas and New Year’s.

According to research conducted by Wonga SA, South Africans spend well over R200 billion during this holiday period. The study was done on individuals between the ages of 18 and 65 and it was found that they spent an average of R5,706 each over the festive season.

“The December period is notoriously expensive, as people go on holiday, buy Christmas gifts, indulge in festive treats and enjoy time out with family and friends. We created this survey to help us understand how South Africans celebrate the festive season, as well as how they cope with the additional expense,” said Taryn Schmidt, the chief marketing officer at Wonga.

So, how can you start saving your salary? Allan Gray suggests beginning with a 20% savings goal when you're 25, increasing to 42% after 40, and 59% after 45 when you're 50.

South Africa’s very own professional penny pincher, Ncumisa Ndelu said the rising cost of living and people's reckless spending in this season contribute to debt and financial uncertainty.

“Some South Africans just do not make enough money and must stretch the rand to exist. When you combine job losses during and after Covid-19 with the cost of living during the last 2-3 years, you get a muddled concoction. Therefore, we all need to be extra cautious with our money and think twice before spending,” said Ndelu.

So, this payday, before you dig into your hard-earned money, think long and hard about how much you will have to stretch it.

IOL Business

Original Article