It is that big-spending season of the year again.

By Nomzamo Thukwane

With attractive commercials everywhere, including taxi ranks, roadside billboards and even on mobile phones, many people fall into the trap of unplanned spending, making immediate decisions to buy before thinking. This habit is normally motivated by emotional thinking rather than a need for the item -- there is a perception that buying something will bring a change in mood.

Many people take leave during the holiday season, allowing much more time for activities with families and friends such as eating out and spending time and money at countless shopping malls.

Gregory Basson, a Certified Financial Planner (CFP) and senior financial adviser at Liberty encouraged everyone to learn to live within their means and to apply the seven-day rule.

“Give yourself seven days to make sure that you really need and can afford what you are intending to buy. We all need to be responsible with money when it comes to the festive season and spend carefully with a budget in mind. If you blow money that you don’t have during the festive season, you’ll definitely go hungry in January. It’s painful remembering the braais of yesteryear that weren’t necessary for you to splurge on with friends and family who were having an over-spending fiesta with you,” he said.

Mr Basson pointed out a few things that people need to avoid buying in December such as furniture and cars.

“There are always more discounted prices in mid-January because businesses want to make money and get rid of the December stock.

Have fun, but know your monetary limits to prevent a forced fast during January,” he said.

Important points to keep in mind this December

1. Don't borrow money.

2. Make sure that you put money aside for all your children’s registration and school-related needs in January.

3. Manage your finances in a way that will not put pressure on you.

4. Prioritise! Differentiate between your needs and your wants.

5. Write out and stick to your shopping list

Remember to spend wisely in December and the five long, arid and depressing weeks of January will be a breeze. More importantly, you’ll have money!