Old Mutual Market Development Manager Sylvia Walker looks at some financial issues we should consider over the holidays.
As a long year draws to a close, you may be looking forward to a well-deserved rest. And while you may be getting a break from routine, your money never does. It needs to keep working for you and take you comfortably into the new year.
If you are going away on holiday, you’ve hopefully planned carefully and saved up for this, and are not funding your getaway with debt.
There is the temptation to buy new clothes for the holiday, often using store cards. However, you could still be paying off these purchases when winter arrives. Avoid the temptation to spend on a new holiday wardrobe and wear what you already own.
If you receive an annual bonus, you can use it to fund a holiday or Christmas gifts. But before splashing out, consider saving some of this money. If you invested some of it into a retirement annuity (or injected a lump sum into an existing retirement annuity), it could be tax-deductible, so you score on two fronts – you are saving for the day when you’re too old to earn a salary, and the taxman is giving you an extra bonus.
Try to pay some of your January expenses upfront in December, as January is notorious for being a long month. Whatever expenses you can pay double will help you get through the first month of 2013. December is always an expensive time.
Make your money work for you even harder over this festive month, and speak to your Old Mutual adviser or broker to find out what options are available to you.
If you don’t have one, call 0860 INVEST (468 378) or e-mail email@example.com, and we will gladly assist you.