The Hangover: Januworry Money Blues

January is known in some circles (mine, in particular) as Januworry, due to the fact that savings reserves are typically low from all the fun and family responsibilities we cover in the December holidays. This type of financial hangover is not unique to me and my friends however. For the uninitiated, January tends to feel like the longest month in the year because the January pay-day stretches far from the last deposit into our accounts. ENCA even compiled a few fun tips on how to survive the income squeeze.

Here are a few tips of our own on how to make the most of the hardest month of the new year.

1. Set Up a Recurring Investment into your EasyEquities account

An underestimated feature on the EasyEquities is the Recurring Investment; a feature that automatically debits funds from your bank account into your Easy account. You can either set this debit order to put funds into your EasyEquities ZAR, Tax-Free Savings Account, Retirement Annuity, or your USD account. You can set the debit order to go into your account at regular intervals: monthly, quarterly, or annually. Most people think of the Recurring Investment feature as being tied specifically to a particular stock or ETF, but you can set it to go into your available funds before choosing what to invest it in. So save it, invest it, and then don't think about it!

2. Invest in dividend-paying stocks

Dividend paying stocks are shares or exchange traded funds that pay out dividends regularly. Think of dividends as supplementary income you receive from shares you own in companies (kind of like the rent you would receive from property you own but rent out). Not all companies pay shareholders dividends, nor consistently at that, but there are a few companies that pay them consistently. Check out this awesome resource I recently found that features a dividend calendar of stocks and companies that are set to pay out dividends, as well as when they would pay them. Remember to apply filters in order to also see South African companies and calendars. 

3. Consider what brands you are buying, and then look into their shares

Nothing is really going to stop some of us from balling out in the festive season. What we do before or after these splurges can shift you from a consumer mentality to an investor's mentality. Think about the companies that do especially well during the holidays (your supermarkets, clothing brands, and beverage companies). I imagine that their profit margins perform somewhat better in the tail-end of the year. Does that company then invest those profits into improving their business or do they dish out profits to investors in the next quarter? This is just my theory, although I do believe it could help shift your perspective a bit about investing. 

4. Make the most of it

No, really. After you have set aside your savings and investments, squeeze every ounce of your goodies out to the very max. Make sure you enjoy the festive season!