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Is there still time to save for the festive season? Yes, says financial expert

9 October 2021 10:34 AM
Tags:
Money
finances
budgeting for the festive season

Sara-Jayne King speaks to certified financial planner Kirsty Scully about the best way to budget for the festive season.

- With just 2 pay cheques left until the Festive Season, Sara-Jayne King asks, 'Is there still time to save?'

  • Financial Planning is all about making provision for expected and unexpected events into the future says Core Wealth's Kirsty Scully

It may not feel like the festive season is just around the corner, but the truth is it is just two paycheques away.

For many of us, December is a time when, even if we don't mean to, we can end up over-extending on food, gifts, and getaways, with the result being that January feels like it lasts forever.

On Weekend Breakfast on Saturday, Sara-Jayne King was joined by certified financial planner at Core Wealth, Kirsty Scully to get some expert tips on how to stay on budget and plan for the forthcoming expenditure of the festive.

1.Short-term savings

Scully says short-term savings options are your best bet.

We can’t afford to lose any capital, so we don’t use investments such as unit trusts, or shares, or property or bonds for the short term: we look for investments that are specific to a very short term.

Kirsty Scully, Certified financial planner - Core Wealth

Scully suggests using something like a money market account.

A money market account normally offers a higher interest rate than a normal bank account. They are available through banks or unit trust companies. A money market is a highly accessible account and this would be ideal for people to use for saving some money before the Festive Season.

Kirsty Scully, Certified financial planner - Core Wealth

For homeowners, some may choose to use an access bond, but Scully says she wouldn't recommend it for festive savings:

Unless you are very disciplined with your money, I wouldn’t ideally recommend that you put money in and then take out of your bond. Often people put the money in, but end up drawing more out than they should draw out. And this means that they are never paying off their home loan.

Kirsty Scully, Certified financial planner - Core Wealth

2.Plan, plan, plan!

Even if you save even a little for the next couple of months your festive season will be that much better than having nothing at all says Scully.

The danger is not planning and then making the fatal mistake of borrowing to get through the holiday season.

Face the fact that if you want to start saving, you will most likely need to cut down on other expenses.

Kirsty Scully, Certified financial planner - Core Wealth

3.Setting savings goals

Scully also recommends setting specific goals and targets:

There needs to be careful planning and consistent discipline as that is the most important point when it comes to saving.

Kirsty Scully, Certified financial planner - Core Wealth

When you have these goals in place you will learn that you have to stop the instant gratification, for example, I feel like a cup of take away coffee - no you can’t, that’s a waste of money

Kirsty Scully, Certified financial planner - Core Wealth

RELATED: [The most common money mistakes people make in their 30s...and how to avoid them](http://The most common money mistakes people make in their 30s...and how to avoid them)

RELATED: Where there's a will, there's a way




9 October 2021 10:34 AM
Tags:
Money
finances
budgeting for the festive season

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