Don’t let festive shopping leave you high and dry
Plan your festive shopping to avoid the financial blues in January
WHILE “Jingle Bells” is playing in your favourite store, don’t ignore the ‘alarm bells’ going off in your head each time you purchase something on a whim. To avoid the ‘financial blues’ in January, take note of these festive season tips
Plan ahead
List all the events and activities you will be attending over the holidays. Your list will help you to build your festive season budget and prioritise your spending.
Build your festive season budget
Step 1 – List and add together all income (after tax and deductions) that you are expecting to receive at the end of November and in December (include 13th cheques or bonuses).
Step 2 – List all of your lining expenses for December and January. You must not forget the extra items that you will need to pay for in January, for example, back to school items and annual policy increases (like medical aid and insurances).
Step 3 – Add all your expenses together and subtract them from your total expected income amount calculated in Step 1. Whatever is left over will be your holiday budget.
Step 4 – Use your activity plan to create a list of extra expenses such as transport, gifts, entertainment, food etc. Add everything together and make sure the total does not exceed your holiday budget. If it does, you need to cut down on activities or expenses.
Hold off on a holiday
It is tempting to plan an elaborate holiday that you can’t quite afford and pay for it all on credit. With times as tough as they are, leaving the costs to be dealt with a later stage is a really bad idea. If you intend on going away you need to plan one year in advance to ensure that you save enough money to afford it. Select a holiday getaway, calculate the cost and start saving towards this holiday. You will benefit from cheaper flights and discounts if the holiday is planned and paid for in advance.
Fun frugal festivities
Aside from a free end of year office party, you will most likely be invited to attend various festive feasts and parties throughout the season. This can quickly run up a big budget. To ensure that you party like a pro, only use the money that is left over after paying for all your household necessities. Then, only accept an invite if you can afford to attend
leave your credit card at home and only take cash car pool or share a taxi with a friend who lives close by to save on fuel costs. When your cash runs out, it is time to stay at home!
