Although you might have to watch your spending during December, there are ways to get the best out of your festive spending if you plan ahead. Getting caught up in the fun of the end-of-year holiday season is not difficult, but it is not easy to stop using your credit card to add to the festive feeling.
When friends are around, the children are having a good time and work is far away, it is easy to spend plastic money, although you know that in a few weeks, you will face a long, moneyless January and ask yourself, ‘How did this happen?’.
The answer is simple, John Manyike, head of financial education at Old Mutual, says. “You have let the prospect of a great time lead you when everything is designed to encourage you to spend. However, there are ways to shop and enjoy your holiday by adopting a year-end holiday plan earlier in the year.”
It is simple, he says. Put in a little planning, spend ahead and avoid the post-holiday financial stress.
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These are his tips for a pain-free December holiday:
“When you are on holiday, it is easy to spend, spend and then spend some more. What is a week away from home if the children cannot buy takeaways for themselves and their friends when they want them?”
Getting financially wise about planning that family holiday does not mean cutting back on the fun.
“Think about booking ahead. The earlier you confirm your holiday, the earlier you can pay it off. If ‘you pay now and enjoy later‘ instead of ‘enjoying now and paying later’, your year-end holiday will be more relaxed.”
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If you are late in planning a festive holiday this year, consider shifting your focus to next year.
“Other benefits of acting early are that more money will be available for the family because the holiday is prepaid. The earlier that bookings are made for flights, the cheaper they are. Using rewards points accumulated during the year can also reduce these costs,” says Manyike.
“These holidays, consider using the budget to teach children the basics of money management by giving a fixed amount of pocket money rather than allowing them to spend as they please. If they exhaust the budget do not refill. Let them spend as they want and they will soon learn to be mindful of spending too much, too fast.”
Manyike says choosing a ‘staycation’ is of course the best way to have a great money-friendly holiday. You get several benefits by staying at home while everyone else is away. You can use uncrowded facilities and have time to reflect on your life and vision.
“Seriously, though, if you had a tough year financially and are dreading the costs of that family holiday, use your imagination, plan some events and enjoy being at home. That beach will still be there for you next year.”
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