Keep the financial stress out of Christmas

It’s not called the Silly Season for nothing. It’s time to let loose with endless parties, a time to spoil yourself and others. But it doesn’t mean you have to be silly with your finances, too.

With a little planning and strategising, you could ensure your bank balance stays on the positive side of zero in the new year. Expenses often seem to spiral out of control at this time of year because there are so many temptations to spend. However, there are a few things you can do to keep costs as low as possible and still enjoy the festive spirit of the season.
The first thing to do is to sort out your regular monthly expenses. When you receive your salary, make sure you put the correct amount aside to cover monthly bond and car payments and any other expenses you may have before starting your Christmas spending.

In an ideal situation, you already started saving for Christmas earlier on in the year, but even if you haven’t; it’s never too late to start planning. Once you’ve “paid yourself”, figure out how much you can afford to spend on presents, food and entertainment during this period – and make sure you stick to it.

When it comes to buying presents, remember it’s not about the size of the present or how many presents there are. Make a list of people who you would like to buy presents for and include a budget for each present and avoid impulse buying. Many families nowadays have introduced a “children only” rule which helps to lower the present bill significantly. An option for the adults is to have a Secret Santa, where each person buys a present for one adult, usually drawing a name out of a hat and sticking to an agreed upon budget.

Taking the time to make gifts for your loved ones is another great way to save money, and these small, thoughtful gifts are usually more treasured than anything you’ll buy in a department store. A quick search for “DIY Gifts” on Pinterest should get the creative juices flowing.

One of the best ways to spend within your budget is to look at buying previously owned goods, especially when it comes to electronics. “In September and October we usually see an increase in people looking to sell their electronic goods, particularly items like tablets, laptops, cellphones, gaming consoles and games and TV’s, Dvd players and sound systems.

They’re usually looking to fund the purchase of new gadgets and holiday gifts. January is also a month where you’ll find excellent second hand electronics as people trade in older models to make use of the newer gifts they received,” says Richard Mukheibir, CEO of Cash Converters, the largest second hand goods franchise in the world.

“The recent SA launch of the iPhone 6 saw many people trading in perfectly good phones so they could upgrade to the newer model. For people looking to spoil a loved one with gadgetry, it’s a good idea to take a look at what’s on offer at previously-owned stores like Cash Converters. You can buy something that’s as good as new, for two thirds or half of the price.”

Besides gadgets, you will also find a host of functional and practical items like furniture, DIY tools, kitchen utensils and appliances and sports equipment, etc. Musical instruments are also a big selling item, particularly for children starting to play an instrument. Mukheibir cautions that when you purchase previously owned goods, make you’re getting a good quality item. A six-month guarantee on most Cash Converters products ensures that any faulty goods returned within six months will be replaced, repaired or refunded.

This year, keep the financial stress out of Christmas. Look for fun and innovative ways to cut back on expenditure – and remember, holidays are about giving love more than they’re about giving material goods. Think about why you celebrate Christmas and get back to basics.