Start of a New Year

To most families, January is the longest month of all the 12 months of the year. But the saddest part is that it’s well known that this month is very financially demanding, there are the school uniforms to be bought, the children’s stationary and the most expensive item is the tertiary registration fee. January also comes after a very festive and joyful month, where everyone is happy and having the bliss to spend their December bonuses and the society payouts. When a person spends in December heftily and dismally to the extent that they will be out of budget, it’s not because they have forgotten their January financial responsibilities.

No parent forgets that, but December has a joyful and festive feeling, it’s also time to relax, chill, braai and just be happy. Then immediately after that, it’s “Jan-worry”. I’m sure most people have tried joining societies or saving money on their own so that they can spend that money in December, but evidently some of us by time the festive season arrives; the society money would have been spent by other members or a problem arises in a household that demands you to take out the little money you were saving, it’s understandable, it’s life, it has its own ups and downs.

What I am trying to bring to your attention is that, if only we would remember throughout the year how horrible January was, I doubt we would break our savings. If only during the year when we want to break our savings, would we remember that in January we were eating pap with ice, I doubt we would spend our little savings we have put aside. We as people must remember that the December salary is meant to pay January bills as it has been happening month after month over the year. Here’s the thing, in December we get our monthly salary and some of us get bonuses, let’s exclude the bonus. We get the salary earlier than our usual date, with this salary, we buy Christmas clothes, lots of food and gifts because now the kids are at home and they eat a lot. We buy more than we usual do throughout the year because we bake, do braai and parties; and on those respective holidays we buy alcohol throughout the whole of December because like I said earlier, December is a time of festivities. Will our salaries really be able to pay for everything we spend on in December and still pay for January bills?

Even if we do include the bonus, is the money we get in December really sufficient to pay for 2 months bills? It’s time we did ourselves a favour and start saving throughout the year. Let’s each take a minute, in this month January which we are not sure how many months it has within it, because it just doesn’t want to come to an end, I mean ever since it has been 2017 it has been January, last year this time it was already June. Let’s do ourselves a favour; if a person saves R50 now in January, R100 in February and increasing the amount by R50 each month, come January next year, a person would have saved R3900. Or let’s say a person saves R100 per month, come January next year, one would have R1200. Imagine what you could do with that amount of money in these challenging financial times of January.

Savings can be made using a cumulative contributions or simple equal payments monthly.

Cumulative Savings Table:

Basic Savings Table:

The sad news is that, even after buying new clothes, toys and spoiling our loved ones over December, come the 2nd of January they will remind you that they going to the next grade this year, and stationary is expected because it’s a New year which means a new grade and most probably new shoes. Its only right and if you haven’t started to do justice for yourself to start this January of 2017 and save from as little as you can, until you start to recuperate during the middle of the year and save more. For now, look on the bright side, this January 2017 is almost over, hang in there.