Head of Advice at Old Mutual Personal Finance Lizl Budhram urges consumers to spend money wisely this December as it will lead to a financial hangover in January.

Many people will throw caution to the wind and pretend they don’t have a budget to enjoy the annual extravagant holiday activities and shopping sprees splurging on unnecessary ‘summer essentials’ and gifts or flashy vacations.

“People have looked after their finances carefully for the entire year and they tend to abandon the care and the focus on budget when it comes to Christmas time or when it I close to the holidays.”

Budhram says that people should only take advantage of lower prices if they are going to save money by buying necessities at a lower price but if they are buying something that is not a necessity which they can’t really afford even at a lower price is not going to save people money but will cost them instead.

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