Tips on how not to overspend this festive season

The season is upon us and it is only natural to be tempted to spend after a long year of toiling and stress. This period can be costly to many who find it difficult to keep track of their spending. Overspending and failing to stick to a budget can lead to stress, anxiety, accumulated debt and no money left for anything else in the New Year.

Absa’s head of saving and investments, Thami Cele has provided seven tips on how to avoid overspending this festive season.

“We all need to be reminded about the real meaning of the festive holidays, and even though they come once a year, it doesn’t mean that you have to overspend and get yourself into unnecessary debt that you will have to repay from January. The festive season and Christmas is about spending quality time with those closest to you. And remember, you get to decide how you want to spend it and how much it will cost you,” said Cele.

It is important to keep track of what you spend

Before you head out to the shops, make a list of all the spending you plan to do and compare it with the amount of money you will have access to. The tried and true savings techniques of planning and budgeting to keep track of spending aren’t very exciting, but they work. By noting down the numbers, you will be aware of which expenses are needs versus those that are luxuries, which in turn helps you to keep your expenses in check.

Take advantage of early deals

A great way of knowing when it’s is a good time to buy is to use the Internet and mobile apps dedicated to shopping deals. According to Cele, the best way to avoid debt is to take advantage of early discounts and price cuts.

Book and pay for your holiday early in the year

Perceptive travellers know that booking a holiday in advance is the key to finding a bargain. It is unusual to find such attractive offers for last-minute holiday packages, so booking early is the best way to take advantage of better prices. However, it’s worth remembering to compare the deal you are considering online before you book to ensure that you are paying the lowest possible price.

Save, plan and budget

Stick to your budget. Many people tend to spend more money than they have. Sometimes they even go to the extent of borrowing in order to sustain throughout the festive season. Only spend money that you have on things that you have planned and budgeted for.

Start a stokvel with friends

Stokvels have grown and adapted to come more in line with society’s changing needs and it has become a useful method for saving among friends and families. An amount is saved collectively to get the most out of compound interest and a payout will be made at an agreed time.