The festive season is here, but what does this mean for your bank account? Use these cash-savvy expert tips to ensure you pull through into the new year with #noregrets.

Responsibility starts at home

Who isn’t familiar with the story of the relative that overstays their welcome, only for it to end in an awkward confrontation that compromises the relationship? As much as you may enjoy having Aunty Wendy visit, there’s a line to be drawn, and if it isn’t, the financial tension this overstepping of boundaries creates can ruin the happy-family dynamic. ‘First start planning everything with your own family before invitations go out to festive guests,’ says Henry Poulos, a registered financial planner and wealth specialist at Beta Wealth. ‘Talk to your spouse first, have a look at your budget and the number of leave days allocated and spend time deciding in your own mind how it will work financially.’ Money aside, communication can (as it often does) be your best friend here, too. Close the expectation gap with guests by letting them know upfront what you can and can’t do or afford when it comes to activities and food, suggests Henry.

Tip: Be upfront about sharing expenses and put it in a suggestive way, for example, ‘We had this idea to pay half for this’, or ‘Could I suggest that we each pay for our own kids for that?’ Try not to leave it to chance, or think in your own mind it will just work out, says Henry. This applies
to the length of stay too – agree beforehand on your guests’ arrival and departure dates.

Staycation FTW

You may have made a tradition of travelling long-distance as a year-end treat for the family, which is great for relaxation and creating memories. But what about doing something a little different this year that’ll take the travel costs out of your budget and still leave you with the rested mind and happy holiday snaps? If you’re
used to international travel during the festive season, consider swapping out the plane ticket with car keys and doing a little road trip instead. Or if road trips have been the long-standing tradition (maybe you drive a long way to see family), stay home and revel in the holiday fun your town has to offer. 

Tip:Want to be a whizz with your extra Randelas? Take Henry’s advice: ‘The beginning of the year is important for your tax planning and wealth-creation strategy. Tax season ends on 28 February, so make sure that if you allocate the correct amounts of savings into your RA, contribute your annual allowable R33 000 to the tax-free account, or use your R40 000 capital gains tax allowance if need be. Good planning before the time will allow flexibility to do so and maximise not only on your savings and debt reduction, but also your tax mitigation.’

For more cash-savvy tips for festive, page through the December issue of Balanced Life.