The wonderful season is here again… It’s festive and anything goes, including your money! This comes as many retail stores start to offer special deals and promotions that are tempting to consumers, who end up spending even unnecessarily. For some reason, people change their spending patterns during the festive season and overindulge themselves, which leads to many people spending money that they do not have.
Becoming a smart consumer on spending and saving during the festive season is key. Have a comprehensive plan in place to know exactly where your money is going this holiday season. That way, you can go about enjoying this festive season without running out of money and go into the new year with celebration rather than panic.
MAKE A LIST OF EXPENSES
To start saving ahead of the festive season is always ideal, it helps to create a plan. Begin by making a list of all your expected festive expenses e.g., gifts, travel, accommodation, holiday food (spending outside your normal food budget), drinks, clothes, bonuses for helpers and donations. Making a list will give you a basic idea of things that you will need to pay for and easier to prioritise if you must limit your spending this year.
DRAW UP A BUDGET
Budgeting is an important part of being financially responsible. And December is where drawing up a budget is most important because some people are either going to be getting their salary earlier than usual and/or are expecting a bonus. So plan what you are going to be spending your money on because at this time of the year it is crucial that you make sure all your necessities are paid for.
Before you use your money to enjoy the festivities, draw up a list of necessities (bond/rent, credit instalments, utility bills, school fees, groceries) and luxuries (new clothing, alcohol, holiday money, gifts). Make sure all your necessities are paid before anything else. It is the best way to ensure that you don’t have to worry about your financial obligations – that’s the purpose of budgeting.
TRACK AND CONTROL YOUR SPENDING
It’s one thing to have a budget but it’s another to ensure you are sticking to it. Once you’ve drawn up your budget and paid all your debts, keep track of your expenses. Check your bank transactions – this way you can keep track of the money leaving your ‘wallet’ and prevent yourself from overspending and ruining this month and next month’s budget. Make sure that you spend within your financial means. And if you’ve already been saving for the end of the year (a great thing to do), now is the time to use your designated end-of-year savings fund. But if you haven’t saved for the holidays, you will have to control your spending more carefully and don’t break the bank.
Don’t get wrapped up in all the sales and spending marketing schemes thrown your way. And avoid wasting money on low quality products because you will end up spending more money on repairs.
SAVE MONEY THIS FESTIVE SEASON
Here it’s not necessarily putting money away (not this meaning of saving) but finding opportunities to spend less so you save, for example:
- Use old gift cards – try remembering where you put all those gift cards you were gifted months ago. Once you’ve located them, use them! Use them for yourself, for your friends, for your family. Make the most of them before they expire.
- Repurpose unused gifts, make gifts and you can always choose quality time over expensive gifts (your choice, your budget).
- Gift in groups – a big, expensive gift doesn’t have to be off the table just because you’re working with a budget this festive. Instead, go ‘halfsies’ with someone else. Get all your siblings in on buying one big gift for your parents or contact the parents in your kids’ class to put small items together to build a gift basket for your kids’ teacher.
- Include essentials in your children’s gifts such as slippers, nightwear and socks. This will save you on purchasing them in the new year. This is a great option not just for you, but for any other family or friends with kids, as they’ll appreciate you kitting out their children and saving them some money further down the line. Even essential items such as stationery for school can be a great gift while also cutting costs later in the year.
- Always shop around for the best deals and prices before you make a purchase. • Always shop with January in mind.
BE CAUTIOUS WITH CREDIT CARDS
Today’s best credit cards are handy financial tools, but they can be dangerous at festive season time. Some credit card customers end up with festive debt that lasts a long time. Yes, it is true that shoppers can lose their sense of financial responsibility when it comes to using their credit cards, so be cautious. If you are going to be using a credit card, you need discipline.
Always use the card that offers the lowest interest rate and pay off the balances as soon as possible. It’s also a good idea to track your credit card spending. These tips to help you save this holiday season are not to make you enjoy any less but to do so responsibly and with ease and peace of mind. Have a wonderful festive season!
