The silly season can dent our bank balance, making us dip into our savings accounts to make ends meet later on..
Why is it so difficult to manage expenses during December? Basically, we’re on a long break during the festive season. So whether we spend time at home or away on holiday, everything needs cash for all those feasts, drinks and clothes.
Aneesa Razack, Head of Strategic Growth at FNB Investment Products says there are more ways to have affordable fun this festive.
Getting into the spirit
We have fond memories of Christmas. As soon as we walk into a shop, not only are we confront with limited choices, we immediately think of the happiness our family members will feel when we give them the gifts. So, before you even leave your house for shopping, rather have a set amount for everything that you’re going to buy and make sure you stick to it.
Alluring Christmas lights
From as early as October, retail stores display extravagant Christmas decorations and promote holiday specials. As soon as you step into a mall we’re exposed to bells and whistles, making it hard for us to resist getting into a festive mood. Try to be disciplined: distinguish what you want and what you really need.
Buying to impress
Many people focus more on how people will react to their gifts than the actual meaning. There is always the fear that your gift will be opened with “that’s nice” while your sister gets an “oh wow! I’ve always wanted this”. Keep it meaningful, it’s not the amount you spend but the thought that counts.
Trying to be everything to everyone
Watch out that you don’t end up playing hostess all season without setting some parametres. The end of the season will come and while you have fed and watered your family, you end with only some great memories, crazy photos and a bank account in the red. Don’t be afraid to ask your guests to contribute towards expenses, it’s easy to bring along an occasional salad or drinks, which will ease your financial responsibilities.
When push comes to shove, how can spending truly be curtailed?
In an attempt to curtail your spending, make sure you draw up a realistic budget, particularly for the festive season. Include all your expenses and allocate a portion of your salary and bonus to savings. Once you know what you are capable of spending, stick to it. All too often, we draw up a budget but end up spending what we want. Rather spend according to your plan and at the end of the day you get to steer clear of the debt trap.
Remember that the festive season is not just about the gifts, it’s firstly about spending time with friends and family. “A small change in mind can leave your savings balance untouched,” concludes Razack.
