The Grinch: The Hero of the Festive Season

Before you roll your eyes at ANOTHER article telling you not to spend big over this Festive season, have no fear…… we actually want to tell you to do the opposite. Heck we’re in a recession – we need you to have a crack at it!  

We just don’t want you to get suckered into spending money you don’t need to – it’s far better if your hard-earned cash buys you more.  

 

  • Festive season shopping is stressful in general – having to battle all those crowds can’t be good for your health but most South Africans live month to month and salary to salary, meaning they are only able to hit the shops when their salary hits their bank account. That’s why sensible shopping is vital and seeking festive bargains can be beneficial while avoiding debt.  

  • Without a doubt, the most popular New Years’ Resolution is to “Get into shape” and research from Investopedia shows that many health and fitness product providers actually bump up their prices over the Festive season to try and capitalize on this new-found enthusiasm for personal well-being. By holding back your purchase until after Christmas and New Years’, you might find excess supply on equipment and fitness gear allowing you to flex your financial muscles.

     

  • New ranges of electronics and video gaming products are often scheduled for release during the month of December, aiming to get a share of consumer wallets over this period. By holding back your purchase until after the rush, you could very well be able to get some of the newest tech at favourable prices, who knows maybe even pick up a “two for one” special along the way.

     

  • Did you know that “Engagement Season” is a thing? In the US, this runs from the start of November to mid-February. Data from StatsSA also suggests that more weddings are registered in December than any other month of the year. Weddings and engagements come with costs like rings and retailers are well aware of this spike and price jewelry up over this period of time. If you are planning to propose in December, use the OUTVest Wedding Calculator to help you plan for all the associated costs.

     

  • For those with more sophisticated financial tastes, the JSE (already offering a number of potential bargains), finds itself suffering from illiquidity and lower trading volumes. For the patient investor with some cash on hand, this is a great time to shop around for some “share” bargains.     

     

  • While it is always tempting to stretch your kids’ school repayments over as many months as possible and lighten the load, you can get between 10 and 15% off if you can pay the schooling up-front in some cases. It might mean some short-term pain up-front but having a couple thousand Rand of extra cash in your pocket from the month of February can make the world of difference.

     

  • When shopping around for cars, December can actually be a great month to buy a new vehicle as there are a number of specials on offer as dealers try and move stock. There is often increased demand from consumers in the New Year to buy a “newer” model – it sounds far better to say you have a “2020 model” than a “2019 model”, even if there is only a one month difference between the time you register the vehicle.  

You have worked hard for your money over the last 11 months and there is nothing wrong with getting to enjoy some of your money. We just want your money to work a bit smarter for you over this Festive Season.

 

 

Marc Ashton

 

OUTvest is an authorised FSP.  All investments are exposed to risk and not guaranteed.

 

 

 

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