Surely you have noticed how prices of goods and services are usually on the rise, including perishable and consumer products during festive seasons right. So surviving this time without extra cash may require some adjustments and creative thinking, but it is entirely possible to enjoy the festivities without overspending – by planning ahead and focusing on what truly matters, one can have a joyful and meaningful festive season on a budget. Here are some money-saving tips to help you make the most of the season:
Create a Budget
Of course, it starts with a budget because it is a planning tool. One needs to assess their current financial situation and set a budget for the festive season (including the entire month of December). Determining how much you can realistically afford to spend without going into debt is very important. When creating this budget, include all regular expenses like rent, utilities, and groceries. Allocate a specific amount for festive-related expenses, such as gifts, decorations, and special meals. Stick to your budget, especially if you don’t have extra cash and you desire to manage your current money.
Have a special savings account for the festive period
If you know how much you are likely to spend during the festive period, the next thing is to decide what you will be saving from beginning of the year till December (if you have not done this, take this tip for next year). You could also consider automating transfers into this account. Ensure you avoid making consistent transfers from this account, otherwise, you might end up spending the money you plan to put away for festive season and December. Another popular way of saving for this period is using stokvels (savings clubs) – where you save together the whole year and share the funds in November or December, this vehicle (stokvel) helps with accountability too.
Prioritize Spending
Make a list of the things you will need to get during the festive season, including any travel plans. Identify your most important holiday expenses and prioritize them, this will assist your spending based on what’s most important to you and allocate funds accordingly. And consider cutting back on less essential items. There is life after this season – bills to pay, including children’s school fees.
Shop early and smart
Look for sales, discounts, loyalty programs and rewards (use any rewards points or cashback, accumulated throughout the year) when shopping and save on festive season expenses. Shopping early in the season can also assist, as you could take advantage of Black Friday and Cyber Monday deals to save on your purchases. Do not get easily carried away by discounts and end up stocking up on things that you do not need. Use vouchers you might have to supplement your shopping and shop online to find the best deals but do avoid unnecessary expenses like expensive decorations or extravagant holiday outfits. Again prioritize here.
DIY Gifts
If one does not have extra cash, this is where creativity comes in, like making homemade gifts or crafting personalized items for loved ones. Thoughtful, handcrafted gifts can be even more meaningful than store-bought ones. Also something like Secret Santa or gift exchange with family and friends, where you only have to buy one gift within a predetermined budget, can reduces the financial burden of buying multiple gifts.
Plan Potluck lunches
If you are hosting, consider making it a potluck, where each guest brings a dish to share. This can significantly reduce your food expenses. Potluck lunches can save you money and reduce the stress of cooking for a large group.
Avoid Impulse Buying and unnecessary debt
Stick to your budget and avoid impulse purchases. Before buying anything, ask yourself if it’s necessary and if it fits within your budget. It is essential to resist the temptation of using credit cards or taking out loans to finance your festive season spending. The interest charges can quickly add up and lead to financial stress in the new year, you do not want to stress yourself paying off debts in the new year.
Plan for January
Always remember January is three months in one. Do not finish your December income in a few days of the celebration. Be prudent while you are enjoying the celebration. Start planning for January to ensure that you will have enough money for your regular bills and any additional expenses that may arise after the festive season. How much do you need to get by in a month? Arrange that amount and leave it where you won’t have access to it until January. Those 13th cheques and bonuses (if you privileged enough to have these) are your January welfare package. They not only for the ‘big days December’ or splurging. When the festive season is over, life will continue, which will require money for you to survive.
Remember that the holidays are about spending time with loved ones and creating cherished memories. You don’t have to overspend to enjoy the festive season. By budgeting and making thoughtful choices, you can have a meaningful and enjoyable December without straining your finances.
