Johannesburg – Affordable April: Staycation or vacation?

April is traditionally South Africa’s 2nd holiday season after December with a succession of public holidays and long weekends, including religious holidays and Freedom Day, giving most people a much needed break. We all enjoy the balanced autumn weather at this time of the year which gives those who can afford it a chance to visit the coast or inland spots without the hot temperatures of summer. But in truth many South Africans are presently choosing to stay at home. According to a survey by Debt Rescue, with rising inflation, high fuel costs, and financial uncertainty, many households are cutting back on traditional holiday ventures.

The survey reveals that during these past December holidays, some 68% of South Africans decided against travelling, with most saying their decision was due to the high costs of fuel, making it clear that staycations are becoming the norm this year.

April is looking better financially

Despite the gloomy outlook with rising taxes in the wake of the government’s budget speech and with many people out there still struggling to make ends meet, there are however some positives to look forward to this April that may make holiday planning a bit more attractive.

“Despite all of this negative news, the inflation outlook this year has been better than anticipated. For example, the petrol price has dropped by over 70 cents a litre in April, which will help moderate spending concerns,” says Zandile Makhoba, Liberty Consumer Economist.

She says the country is currently in a forward looking position now with regards to the economy, which means we can expect better growth in the years ahead if all goes well, despite the present hardships.

“For ordinary people the message here is to plan your holidays well ahead, if you really want to make the most of them, because we all want the opportunity for a real break,” she says.

Financial Planning

Liberty Financial Adviser, Portia Makhubu agrees, saying that holidays are an important component for much needed rest, if one can afford them.

“We all work for the things we want, and what we aspire to in life. The key to making these things happen is wise financial planning, and in doing this, goals can be achieved, including going on the holidays we want,” she says.

Here is her holistic holiday planning checklist:

• Plan holidays at least a year ahead, even more if you can
• Work out what you need to spend well in advance for the places you want to visit, or the things you want to do. Remember self-catering venues give you more freedom here
• If you can, try secure your destinations with a deposit, which might reduce the final payment
• For all this to happen effectively, your holidays expenses should be part of your yearly household budget planning
• Open an investment based savings plan, such as Stash, to grow your holiday fund
• Most importantly, enjoy your holidays because you’ve earned them. They should never be a financial burden

“Planning and saving for holidays should be an ordinary part of your life. So saving is the key here. Holidays are important for your overall well-being.”

Partner with a Liberty financial adviser to unlock your financial potential and create a smart plan for the life you deserve.