S2 E15 Avenging The Christmas Bonus

It's Episode 15 of Season 2 and with the end of the year fast approaching, Arthi and Malika prompt you to remember all the advice shared ahead of the festive or 'silly' season. In a fun twist, analogies from the cartoon comic Asterix and Obelix form the underlying basis of this episode (can you believe there was a Roman legionary called Christmasbonus!).

If you are lucky enough to receive a Christmas bonus or thirteenth cheque in November, it may be very tempting to immediately splurge this extra income on non-essentials. However, this might leave you feeling in the doldrums come 2024. The good news is that if you have been listening and implementing all the useful hacks provided since February, that bonus can be used smartly and effectively allowing your 2024 to begin with ease. 

Malika and Arthi recap tips and tricks to enable you to be in a much better financial position. These include thinking ahead, using loyalty points, dining at home, sticking to your budget, shopping online, and recycling decorations. 

Arthi reminds us about how to prioritise investments at this time of year and how to spend wisely.

Highlights from this episode's  discussion:

• The do’s and don'ts when it comes to the festive season
• What to do if you are not prepared for this time of year?
• How you can be better prepared next year.
• Mindfully rewarding yourself for sticking to your budget
• Remember to Plan-Track-Plan (PTP)
• The questions posed at the end of 2022

And so much more!

Remember: “that small changes in behaviour and that the decisions we take with our money can really make a huge difference to our wealth”.

Stay on track to avenge you Christmas bonus from previous years, to secure you financial village into the future!

We would love to hear your views based on the concepts covered in this episode. 

Do rate, write a review, and share with others.

This episode is proudly sponsored by Old Mutual Wealth.

🎧 The Swan Effect Podcast is proudly sponsored by Old Mutual Wealth, supporting conversations that help us build financial clarity, confidence, and long-term well-being.

If this episode resonated with you, please subscribe, share it with someone who might need it, and leave us a review. We’d love to hear your reflections — your messages and comments help shape the conversations we have next.

Thanks for listening!

— Arthi & Malika

Transcript

Arthi Rabikrisson: 0:00

Your legacy is about more than just investment returns. It's about the peace of mind that comes with knowing your investments are in the right hands and that you've partnered with an investment manager who has the right skills and experience to grow your wealth. Old mutual wealth is a world class investment destination offering you a wide range of investment strategies and specialist wealth management solutions. Whether your goal is to grow your wealth, generate income or preserve capital, old mutual wealth selects the best and most suitable investments based on your investment strategy and their extensive research and insights together with your financial planner, old mutual wealth team of experienced specialists go to great lengths to understand what really drives you. Once they know your priorities they model a strategy around your specific needs supported by a multi skilled team dedicated to taking your wealth further, whether your goal is to grow your wealth, generate income, or preserve and pass on capital or mutual wealth is here to partner with you on this journey so that you can do more, have more, leave more and be more. Old mutual wealth is an advice led wealth management business aimed at providing financial planners and their clients with a full suite of industry leading strategies and services. For more information, please visit their website at www.old mutual.co.za/wealth Hi, there, I'm Arthi Rabikrisson

Malika Petersen: 1:49

Hello, I'm Malika Peterson.

Arthi Rabikrisson: 1:52

Welcome to

Malika Petersen: 1:53

the Swan Effect podcast.

Arthi Rabikrisson: 1:55

Money makes the world go round yet it's not so easy to understand its complexities, particularly when it comes to investing.

Malika Petersen: 2:04

That's why Arthi and I are using this platform to educate, inspire and help you gain confidence in your relationship with money

Arthi Rabikrisson: 2:13

So that you can better manage your finances and investments.

Malika Petersen: 2:18

We are two women in finance.

Arthi Rabikrisson: 2:20

That's pretty cool, isn't it?

Malika Petersen: 2:22

It certainly is. You've been in stock broking private wealth management, asset management and now an award winning business woman who is coaching and assisting businesses with capital and strategic advice

Arthi Rabikrisson: 2:35

and Malika you have a wealth of experience in wealth, excuse the pun, in financial planning, investments and relationship management. So you're also at the coalface when it comes to where and how people are investing or getting it right and getting it wrong

Malika Petersen: 2:54

and stuck in the grey areas too. Indeed, I've seen the many phases and moods of financial cycle and how our decisions at that those times impact us. So listeners and subscribers if you are looking to get unstuck, feel empowered and make some strides in how you tackle your money. We are here to help you.

Arthi Rabikrisson: 3:16

And it all starts with listening to this upcoming episode. Enjoy Hi everyone is just me or are we steamrolling towards the year end. My goodness, here we are it's November and literally in a matter of weeks the onslaught of this silly season is upon us nevermind the fact that Christmas has been bombarding us since last month already. You know with all the decorations all the ornaments available in store. Malika, how are you feeling at this point in time?

Malika Petersen: 3:52

Arthi you hit the nail on the head and what an onslaught it is. Im already seeing advertisements for Black Friday special, which as we've seen in South Africa is actually a o month long affair right?

Arthi Rabikrisson: 4:06

Exactly.

Malika Petersen: 4:07

It's not just the last Friday inNovember. The good news is that if you've been on this journey with us, and you've implemented the tips and tricks that we have suggested you will be in a much better financial position this year.

Arthi Rabikrisson: 4:23

Yes. And you know not to worry also for all of our new subscribers, or those of you who are curiously deciding to check out this episode, we do encourage you to please listen in to the previous episodes. The good news is that today we will be providing such a good reminder to everyone about how to face that silly season and then also the do's and don'ts that puts you in the best possible financial position for the year ahead.

Malika Petersen: 4:50

Now Arthi you will recall that last year we spoke about this November, November. It's the month that many eople receive a bonus or Thirteen's check in and our tendency is often just spend this on holidays or gifts associated with the festive season. Now, it's very interesting to me how we've come full circle just a few episodes ago, we spoke about how wealth is created not only on how we earn what we earn, but also on how we decide to spend our money and the bonus of thirteenth cheque is often that one sum of years that we have a real lump sum that can be used to boost our journey towards financial freedom.

Arthi Rabikrisson: 5:38

Absolutely, Malika and you know, I'm gonna segue a little bit into something else, because as we're talking about this bonus, and the Christmas bonus, it's reminding me of a lovely little comic that I think many people remember called Asterix and Obelix, where they are these two gowlss, and they always thwarting the advances of the Roman Empire threatening to take over the little village in Gaul, which is actually France right now. I've got a six year old son, as everyone knows, and he loves these stories. And also because it's so funny, right? It's really funny. And also because the Roman soldiers have some of these incredibly funny names in the stories so hilarious, and there's one that actually stands out that I know my son always laughs at and his name is Christmas bonus. But actually he is far from generous, right? So you know, as we're talking about this whole idea of a concept lets play around with this a little bit for our episode today, because exactly as you've said, Malika you know, in the past years, we've received our bonuses or our 13 cheque, only to see it vanish into thin air so quickly, and then we left feeling in the doldrums for both Christmas and even New Year festivities.

Malika Petersen: 6:51

No, absolutely not. And now that you mention it I remember Asterix & Obelix so fondly vanquishing the Romans into theri village and feasting on wild boar with the big party as well. The reality is that everyone if you've implemented some of the hacks that we've suggested, right, you wrote the vanquishing some of your own christmas bonus,like the gowls right.

Arthi Rabikrisson: 7:20

Yeah.

Malika Petersen: 7:21

And youll be able to protect your financial village towards prosperity. So you know, there's so much there, all these many that won't be won't need to use this lump sum for the festive season because you follow the tips and the tricks. And you've used those tips and tricks along the way that has allowed you to not need to use the lump sum and you could invest some or all of it to boost your wealth. Is that not a cause for celebration?

Arthi Rabikrisson: 7:51

Oh, absolutely. Love it!

Malika Petersen: 7:55

Remember, everyone, growing your wealth over time allows you to achieve the financial goals that you have defined yourself. And we've spoken about the need to invest between assets, etc, etc. Right? Yes, money needs time to benefit from the full potential of compounding growth. And this is really one of those opportunities that allows you to start investing as soon as you can, and letting the compounding do the work for you.

Arthi Rabikrisson: 8:21

And yeah, we always said this, this is like the eighth wonder of the world compounding and what it can do. And I mean, now that you're talking about the hacks Malika, I think it's it's very important for our listeners that we revisit that right? Again, it goes back to the neuroscience based episode, we talked about the mindset episode. And we just want to reiterate this, because we know you're in the process of cultivating this mindset around, you know, better financial understanding, and also, you know, moving steps forward. And sure, there's so many of our listeners who are thinking that, you know, they're not going to be able to use their bonus for investment purposes, because there's all of these consumer things that need to happen from holidays, to gifts, to entertainment for the kids and family, because everybody's going to be on holidays over the festive season. Essentially, there's two things that I think I'd want our listeners to consider Malika and first one is, you know, what do you actually do if you haven't prepared for this, you know, over the over the year? And then secondly, what can you do now so that you are better equipped for next year? Okay? Because it's not all doom and gloom. I mean, we learn from from things work, and we move forward. So we shared many of these steps last year and for those of you that I know have been diligent and staying on the journey with us, you're now going to be reaping some of the rewards of implementing these, so let's just recap right you would have already created some pot for saving and investing with short, medium and long term goals attached to them. One of the short term saving goals you may have had would be, you know, to spend, obviously, during this time. And now obviously, it's also the time to reward yourself because you stuck to the plan everyone, that's an important part, right? To keep you motivated to keep doing this, though, you use your short term savings that you've created to then, for example, book your holidays, as soon as possible, right, it will be far cheaper to do it now, than doing it closer into December, it's going to be more expensive. Okay. The second thing is you would have already been buying gifts throughout the year, instead of leaving everything till the last minute. So that means that that demand is going to be less this time of the year. And you're not going to have to dip into additional savings, or suddenly have to procure some level of unsecured debt. In order to get this done. Okay, we know and you are feeling this everybody, interest rates are high at this point in time, they're expected to keep climbing as well. So we really want you to try and avoid incurring even further debt. Also, remember, prices do escalate, they go up over Christmas time. So your buying over the year has probably saved you a lot as well. Now, the third point that comes to mind Malika is also the fact that you know, if our listeners have been pushing forward with our strategies that we that we shared with them, they would have also accumulated points, right through loyalty and reward programmes over the years. Now, everybody, it's so easy to lose track of what you've got available to you, there's so many reward programmes out there. So first thing you want to do is make sure you understand what is available to you. And often, I mean, I also get surprised by this, more than what I think is available to me has actually been accumulated. So it's a surprise on the upside, which is great. Many of these reward programmes offer discounts for your travel for flights. And you know what every little bit helps when you're planning that lovely holiday and that break for you and your family. So use your accumulated rewards for these luxury items. And and everyone remember school for next year for the kids. So think about the stationery also that you needing for 2024. I know it normally doesn't form part of the grocery list at this part of the year. But again, thinking ahead because you've got some of these rewards in place, because you've accumulated savings. Let's actually take that in now and get it done and dusted. Okay, buy it now save. So you're not going to be paying extra when suddenly all the school stationery starts to come on board, which is what typically happens just before Christmas has ended. Yeah. So I think those are some good tips to see where our, you know, to just reiterate to our listeners, if you've been on this journey with us, I'm expecting that this is kind of we're setting this point in time.

Malika Petersen: 12:42

Yeah, you bring back so many beautiful memories for me Arthi. This time of year, we would always have a big box of quality streets, And you know, I'm genuinely excited about that our listeners can now reap the rewards of the journey that we've been on together. And again, I want to encourage those who have joined us recently to listen to previous episodes, it's very important to remember to remind everyone about what we can start to continue to do just to ensure that we are prepared for the next year. And what the continued journey towards financial freedom looks like we did achieve so much together over the last year. But we want to make sure that people continue the behaviours into the new year, so that we need an even better financial position this time next year. So the first tip to do so remember, PTP right. I'm taking us all the way back.

Arthi Rabikrisson: 13:44

Okay. Plan, track plan everybody.

Malika Petersen: 13:46

Plan, track plan. It is essential that we take our time at this time of the year to re-visit plan. You now have a full years worth of data to help you identify your spending habits and potential savings that you don't make into the future certain sort of essential. Register on an application like 22 Seven on your phone to track your spending or you can do it manually using a spreadsheet if you prefer with either way. Now is the time that you need to review your spend,ask yourself the hard question, create your new budget for 2024 that prioritises saving and investing and then as always remember to consult your financial advisor so that you can get the plan,right. Our second tip, listen to our savings and budgeting tip and implement the simple hacks that will allow you to save money again. So let's let's talk about some of the ones we've covered before. Go to your bank, especially now with the interest rates increasing try and negotiate a better bond or debit interest rate with your bank? Because you've been on this journey with us for A year, your spending habits will translate into a credit score that is probably better. This puts you in a better position to be able to have that conversation with your bank. Right? The minute you're able to negotiate that lower interest or debt, whichever debt you have right with your bank, it'll put more money in your pocket. And this will save you in the long run. Next important tip, my favourite part, although my husband doesn't always agree, but definitely open shop online and the reason we say this is that when you shop online, you buy only what you need. I've personally implemented this I've spoken to you guys about it before and it's creating ads not only allowed me to only buy what I need, what am I grocery list, but it also allowed me to shop around at different stores to see who was good what's special, and I need to find from different stores so so yes, I'm paying a little extra for delivery fee but overall savings is still very much positive. So I really do encourage people to shop your groceries online. Next step shop without the kids nowadays, it is not I mean, my kids are grown and they still put pressure on me to buy stuff right. In general children tend to make us spend more. So if you are shopping in store, if you prefer to do your shopping in store make a list stick to it and leave them at home. Dad needs to take care of them while you shopping right? If you have to do Black Friday, do it online, only spend what you've plannedYeah, it's very important. I always joke that I save 100% on Black Friday because I don't buy anything.

Arthi Rabikrisson: 16:46

Black Friday is not for you Malika.

Malika Petersen: 16:47

Defintely not but I am aware that if people have been saving towards a big ticket item, you really can get a good deal by buying that big ticket item on Friday on Black Friday. So so so so I do understand that some people buy, but stick to your budget. It is so so important. Our next tip that we shared before dine at home, right? avoid overspending on meals have a brrai, have pizza night have a burger night at home with friends and family and time for fellowship and fellowship doesn't always cost a huge amount of money. If you add some board games into that mix you have dinner and a show for a fraction of the price. Yeah. Maybe except 60 seconds, 60 seconds

Arthi Rabikrisson: 17:30

I like that. has been rumoured to cause divorce but any other board game. Wait 48 hours before making any big purchases, ensure that you do your homework and understand price differences and features. Arthi you know better than me the psychological effects of just waiting 48 hours allows you to see blind spots that you potentially wouldn't have thought about if you just made the purchase immediately. So wait 48 hours before making big purchases. Google or if you like my husband drive from shop to shop to look at the different prices, I think it's crazy, but use Google guy and find on what the price of things that you can find. Especially if you're buying big ticket items, you can find significant price differences just by shopping around. And then our last little tip from last year recycle decoration. Pack them up beautifully when you're done so that they can be used again next year. Such such great reminders. Malika I think we've really come full circle. I think it's so great that our episodes are having, you know this kind of effect. Like we're talking about it now. We've discussed all of this over the last it's coming together. That's the sense of getting and hopefully listeners with we're empowering, empowering you financially as well through this process. Right. Another thing, I suppose that I'd like to remind the listeners Malika Is the two questions that last year this time, we were kinda like putting forward to all of our listeners. And these are questions that come up at this time of the fall for most of us. So I want to revisit them because I do believe they're quite important considerations. The first question was, I have so many people depending on room, how do I prioritise something like investing at this time of the year? And, you know, I think we would have shared last year that you know, we have this responsibility to ensure that we're being and showing up as a positive influence for not only the financial future of ourselves, but also for others too. And when we do invest everyone, it allows families it's not just the individual it's families to collectively create wealth for generations to come and Malika I know how passionate you are about this right? Building generational wealth, right? It's and that takes planning everyone so planning is essential. It is important to prioritise I saving and investing, I can't underscore this enough everyone. And therefore, it's also why its so important to start investing as much as you can, as soon as you can. Also think about things like, you know, if you have been investing, you know, dividends do get paid out regularly as well think about rather than, you know, having those dividends come into your bank account, what are the other ways you could reinvest that so that you can actually, you know, later even compound potentially into new investment, or can be available in some other form at a later point in time? We don't need it right now. So let's look at those different ways to the second question that we had posed was around the lines of, you know, I feel like I want to just spend without thinking about the consequences, how to actually deal with this, right? Because I mean, it is, as we said, it's the silly season, we've gone black friday coming up, we're being bombarded with consumerism at this point in time, and you just feel I'll have been so diligent up until now, cant I just let it go and splurge and enjoy myself, and then I'll come back to it, as I know, is what typically goes on in our head. And everyone, you will remember that nev spoke about delayed gratification, right. And that is about pushing something a little bit further out. And when you do that, the fruits of that action actually sweeter. So similar to what Malika was saying just now about if you're thinking to buy something, just wait at least 48 hours, because most likely, some of the rational thought is gonna come in, and you'll start to make better decisions about do I really need this now? Can I wait to get it later? Or can I shop around to get a better deal than what I originally thought? Okay, so just reiterating that. Now, at the same time, everyone, you know, we're not here to be, you know, somebody standing over you with a whip to say, Well, you can't do this, and you shouldn't be doing this. And also that. So here's the other thing. I mean, this almost as balance that needs to be had between barating yourself, but also not overdoing it. And the thing is, is even if you do end up, you know, yes, I want to spend a little bit on myself, I just want to enjoy it happens butwhat comes after that is most important. So in other words, how do you then correct that to get on track and okay? And that's a key thing. So I'm going to share an example with you. And it's so interesting that you said the fellowship Malika, because it made me think of the Lord of the Rings, which i am a big fan, I'm a big sucker for collectibles around lord of the rings around Harry Potter's well, and typically when they see something quite unusual, not only does it catch my eye, but you know, I also can have that urge. It's like this almost it's given that oh, I need to buy this because I've just seen it and I love it. So this is this is the question are we talking about with the with everyone? Now, I must say I'm pretty good. Malika. Many times I do curb the urge to buy it with a lot of rational thinking. And I typically think about well, what's the opportunity cost here? Meaning, what else could I buy with this money instead of spending it on this collectible, but I'm only human. So there's been a few times where I've pushed rationality out of the way in favour of instant gratification and getting something so in the moment, I get very satisfied who have bought it. It's something unique, I love it. But then Malika Do you know where it's sitting afterwards? Right? It's sitting locked away in a cabinet collecting dust, as my mother would say. Because it has no other utility for me beyond just something to admire, you know? So it's the I admired think about when I bought it, but for the rest of the year, I forget about it. So, you know, do I beat myself up about it? No, I don't, it happened. But I've learned from it. And I guess this is what I'm sharing with you listeners is we learn from this, right? And I actually use these trinkets as a reminder to myself that, you know, my choices lead to an accumulation of stuff and things that are just filling up a house instead of accumulation of experiences, for example, and that is something I really enjoy. I love travelling I like trying out new things. So again, that opportunity cost element starts to come in. So I guess in a long winded way, everybody what I'm trying to say is think about Marie Kondo in your spending, right? Everyone knows about Marie Kondo, the decluttering specialist to call her that thinking I think about her strategies about how you're spending and how through spending, you may be just adding clutter to your life, and instead let's choose to be selective about what's truly worth spending on rather than just purchasing on a whim because you know, nothing, nothing, nothing feels better than when you get your financial house in order. That's my view. What's What's your thoughts on this Malika?

Malika Petersen: 24:48

I totally get the Marie Kondo way and I'm like you I am a work in progress. I'm just like everyone.

Arthi Rabikrisson: 24:59

Yes,me to me to.

Malika Petersen: 25:03

When it comes to finances? I think you know, that's a great way to put it because the financial consequences of what we do in an instant can haunt us for years to come. And no one likes that right I mean,

Arthi Rabikrisson: 25:17

absolutely, absolutely. Malika, sure anything with that? Should we've actually covered a lot today in terms of recap. But it's such a lovely recap of everything that we've been speaking about it, it all just feels so practical at this time of the year Okay, so, since we've covered so much already, I think we're coming up to our parting shot. So I'm interested to hear Malika, what is your parting shot for episode

Malika Petersen: 25:41

Arthi, this episode is really reminded me of today? why you and I embarked on this journey to begin with the realisation that small changes in behaviour and that the decisions we take with our money can really make a huge difference to our wealth and our financial futures is always an awha moment. I mean, you know this, I am really passionate about changing the financial futures of all South Africans and our listeners across the world. So i think for me, we have a responsibility to do that we have a responsibility to teach and help people to reach the financial goal. Yes, no matter what that starting point is so so for me, I mean, I've implemented many of the tips that we that we share, and I know firsthand that it makes a huge difference in my personal journey. What about you Arthi, what is your parting shot?

Arthi Rabikrisson: 26:39

who ya look, I must say even me, I've also used pretty much all of the tips, right, everyone. So this is not coming from a place of we've, we're just talking about it, and we've not tried it ourselves. It's from a place of weve actioned it and seeing the results of it right. I think Malika, and I just want to reiterate that, but I guess my parting shot Malika is everyone let's not become Pennywise Pound Foolish with our extra cash this month, yes, you've earned the reward and you must celebrate and acknowledge that in some way. So that it motivates you to keep going but it that shouldn't be done to the detriment of your financial situation, as you start 2024 everyone. So remember that mindset reframe, about seeing investing as a reward to Okay, that's also going to be very, very important. And again, I just want to reiterate the concept of delayed gratification. Trust me, you're going to be smiling for far longer when you embark on the principles that Malika and I have been sharing with you over this past year. And everyone there's no better time to start than today. okay its never too early

Malika Petersen: 27:50

I feel like our parting shots are like the magic potion that the guy make for the village

Arthi Rabikrisson: 27:58

Yeah, I love that. I love that we are powering up our financial village as you said earlier to render the homestead yet

Malika Petersen: 28:06

Onwards and upwards

Arthi Rabikrisson: 28:10

Yes defitnely always Malika All right Take care, until next time.

Malika Petersen: 28:16

Sharing is caring

Arthi Rabikrisson: 28:18

and knowledge is power.

Malika Petersen: 28:20

Time for you to be daring

Arthi Rabikrisson: 28:22

and let your money confidence bloom like a sunflower.

Malika Petersen: 28:26

Thanks for joining us. We hope you found these ideas and guidance useful

Arthi Rabikrisson: 28:32

do subscribe, share and write a review or send us comments. We would love to hear from you.

Malika Petersen: 28:39

Catch you on the next episode

Arthi Rabikrisson: 28:41

of The Swan effect podcast.

Malika Petersen: 28:43

Bye for now.

Arthi Rabikrisson: 28:44

Ciao.