Survive the holiday spending battleground
JOBURG - As shopping centres promote festive season spending, give yourself a game-plan to avoid financial trouble this silly season.
“Even though you might be relaxed during the holiday season, there is no worse time to let budgeting go out of the window…We are not only fighting against store displays, but also our inability to remain financially disciplined, as well as the excitement that comes with this time of year,” said Eunice Sibiya, head of FNB Consumer Education.
You can’t afford to allow holidays to prevent saving, so when you receive your salary, pay your savings first, and save a portion of your bonus. As the holiday hits, allocate funds on top of fixed monthly costs to cover extra expenses, including overspending. Hold onto your budget to avoid seeing red.
Put away the plastic when you party, and take your evening’s budget in cash. When your money runs out, it’s time to head home. Shopping alone can help you avoid social overspending as you fill the Christmas stockings.
“If you set out to do your gift shopping in particular, leave the kids at home. This will reduce your distractions and help you stick to your shopping list and budget,” suggested Sibiya.
Fitting gifts to a budget can keep them lighter on the pocket. Affordable, useful, high-quality gifts are hard to find, so change your approach. The age-old ‘Secret Santa’ is both thrifty and fun for adults, while encouraging your children to make presents which unleashes their creativity and creates a mindset that is less about the gift and more about the thought behind it.
“Consider a gift that can be shared between children, like board games… Alternatively you can buy a memory, budget permitting of course, like a family day at a theme park… If you already fear what finances will look like in January, buy a gift towards the new school year such as educational toys, art material or a nice sports bag,” said Sibiya.
“Remember that only you are in charge of your finances. Don’t open store accounts because you can’t afford presents… and don’t spend just for the sake of spending. Instead, go into this season armed with an effective spending strategy,” Sibiya concluded.
