Give yourself gift of financial discipline this festive season

Give yourself gift of financial discipline this festive season

However, if you think about how much longer you will have to go until the next payday, this should be more than enough to make you fight off the temptation that comes with the silly season. With many employers paying December salaries as early as the 13th, the gap before the next payday is big

However, if you think about how much longer you will have to go until the next payday, this should be more than enough to make you fight off the temptation that comes with the silly season.

With many employers paying December salaries as early as the 13th, the gap before the next payday is big – 42 days for those usually paid on the 25th and 49 days for month-end earners, says Standard Bank solution owner of digital money manager Shené Mothilal.

“The festive season adds financial pressure as South Africans stretch their December salaries while spending more than usual. Standard Bank’s analysis shows that South Africans spend their salaries faster in the last two months of the year,” she says.

“November salaries are spent faster than December’s. December salaries last slightly longer, with customers taking two to three extra days on average to spend 50% of their income compared to November. Higher middle-income and high-income earners take nearly twice as long to spend half of their December income – about 11 days compared to just six days for entry level customers.”

She says the November trend is largely driven by Black Friday.

“[It] encourages extended spending.”

CreditSmart MD Wikus Olivier says sales “to buy now, pay later” make it too easy for people to fall into the trap of overspending and start the new year with regret.

“As 2024 wraps up, remember that the true spirit of this season isn’t in excessive spending but in celebrating your achievements and cherishing time with your loved ones,” says Olivier.

“This festive season, celebrate smarter, spend wisely, and prioritise your financial wellness – a gift that keeps giving into 2025 and beyond.”

SowetanLIVE

Original Story by www.sowetanlive.co.za

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