Sebastian Pillay, Product Portfolio at FNB Wealth and Investments
As the holiday season gets into full swing, it’s important for consumers to make healthy money management decisions that will help them manage their finances and stay committed to their short-term or long-term investment goals.
According to Sebastian Pillay, Product Portfolio at FNB Wealth and Investments, “people tend to give in to the temptation of ‘being merry’ when spending time with their loved ones during the holiday season. While this time of year is a season for giving and creating lasting memories, you still need to keep an eye on your financial goals for the future. As a result, you need to be frugal about spending and avoid dipping into your investments to boost festive season spending.”
Pillay shares key considerations to help you stay invested this festive season:
- Set aside a budget for spending: Unlike the rest of the year, the holiday season is often characterised by impulsive spending. To avoid the temptation, set aside a clear budget and maintain financial discipline. More importantly, the holiday season is fairly long and those who rely on a salary will only receive their next income late in January. Be savvy about the way in which you manage your money.
- Stick to your financial goals: Your goals form an important part of your financial journey and wellness. Ensure that you stick to your short and medium-term goals throughout the holiday season. These goals need not be limited to your life but can also extend to your investments, such as a nit trust, money market fund, exchange traded fund, or tax-free savings or share accounts.
- Invest in yourself: It is worth noting that ‘investing in yourself’ is not only about eating healthily or exercising, but it’s also about managing your finances so that you can retire comfortably in your golden years. The journey to a comfortable retirement is never too early to start. Hence, it is always advisable to avoid touching your retirement savings for any reason apart from actual retirement. At the end of the year, it is also common for people to change jobs to pursue new life and career goals. This, however, should never be seen as a opportunity to cash in our retirement savings.
- Give a gift that will last: While we all look forward to those lovely gifts, why not be creative this holiday season and consider investing in global exchange-traded notes (ETNs) from leading international brands for your loved ones? For as little as R10, you can gain access to and maximize investment exposure to top global ETN shares such as Amazon, Apple, Coca-Cola, Facebook, McDonalds, Microsoft, Netflix, Tesla, Adobe, Ford, Berkshire Hathaway, Goldman Sachs, JP Morgan, PayPal, and Visa. A little goes a long way and will certainly make a difference in your loved one’s future.
“Remember that this is the last month and last lap of 2021, so ensure that you have fun while keeping a good balance by staying invested during and after the holiday season. Challenge yourself to make wise money decisions that you can be proud of and take into the New Year without any stress of Jan-u-worry,” concludes Pillay.