The festive season signals that it‘s time to let your hair down, but it’s still important to be savvy with your finances. You don’t want to blow your budget ahead of the New Year! Here are some tips on how to bolster your festive budget this year, and in the years to come!
Give yourself a lasting gift
Expecting a bonus this year? If you are one of these lucky people, you’ll know how easy it is to blow it all over the festive season. But with a bit of smart thinking, you can enjoy your bonus for years to come – all you need to do is squirrel away a portion of this extra money every year and invest it wisely.
You don’t need to take all of it – just decide upfront how much and enjoy the rest. Let’s say you put away R5 000 a year at 8% growth, you would have R31 600 after five years, and R46 500 after 10 years. To ramp up your stash, add to it every month – putting away an extra R300 per month over five years, you would have R53 700, and over 10 years, just over R100 000. Now that’s a lasting gift to get excited about!
Gifting without guessing
Finding the perfect gift for someone can be a real headache, and how many times have you received a gift that’s ended up in the ‘regifting’ drawer? No one has money to burn, so with a bit of planning you can cut out the guesswork and keep your budget in check.
To make it easier, start by creating a list of everyone you need to buy gifts for. Decide on an overall budget for gifts, and then split that budget accordingly to include everyone on your list. With apps such as Christmas List, you can create gift lists and set a budget per gift, and you can track your purchases in real time to make sure you don’t end up in the red. But the really cool thing about this app is that your family and friends can download it, and you can all create gift wish lists, and share these with one another. You can even create a wish list for your kids. Once a wish list has been shared, other members can select items from this list to buy for you. You won’t see what they have selected so it will all still be a surprise!
If you’re not the one for apps, a simple handwritten list will do, though you won’t have the benefit of sharing wishlists amongst friends and family – unless you make it a thing!
Tips to save over the festive season
There are small considerations that could make a big difference to your festive budget – or at least help you shave off a few pennies. Here are some tips to implement in order to save more over the festive season:
- Work out your festive budget upfront
- Plan your shopping – don’t leave anything to the last minute
- Use up your loyalty points
- Get creative and save money by making your own decorations
- Create rustic wrapping paper – brown paper decorated with pressed flowers is beautiful and saves money
- Give home-made gifts from the heart
- Don’t waste money on stocking fillers
- Don’t over-cater – around 30–40% of food cooked over the festive season is binned
Compiled by Savannah Douglas
