BE WATCHFUL of your spending during the festive season - it can land you in a debt nightmare

As the festive season draws near many consumers receive their 13th cheques, even those who do not get one do spend a substantial amount of their pay in buying gifts for friends and family, and on holidays.

Old Mutual head of financial education John Manyike says good budgeting for the season is essential.

He suggested the following tips :

• Find out where you are financially - write down what you earn, owe and spend.
   
• Write down your fixed expenses - these will include rent, bond repayments and insurance premiums.

• Then jot down your variable expenses - food, transport, rates, cellphone, entertainment and clothing.
   
• Write down your irregular expenses - car and household maintenance .

• Add up your expenses . If they exceed what you're earning, you're already in trouble.

• Prioritise your expenses in order of importance.
   
• Use the money you free up to pay off debts. Start with the ones that attract the highest interest.
   
• Set up an emergency fund to deal with unexpected expenses - about a month's salary, and think about investing some money to reach your financial goals.

• Once your finances are in order, you can budget a little money each month to congratulate yourself.