Top financial institutions report that come January they are inundated with requests for extra financial help as a result of overspending (on credit) during the festive season. You don’t have to fall in the same trap!
Buy now pay later trap
We all love holidays especially the December festive season when most of us either go on holiday or stay at home and receive family and friends as guests. Unfortunately, these pleasurable activities cost money, a lot of money! The trap that most South Africans fall into over the festive season is to reach for their credit cards to carry them through. Top financial institutions report that come January they are inundated with requests for extra financial help as a result of overspending (on credit) during the festive season. Fortunately, with a little bit of planning, you can side-step these consequences and still enjoy the festive season without getting into debt.
There are different ways and means to prepare and save for the coming festive season; if you start well in advance! Here are some examples:
Save now
Start planning and saving for the festive season well in advance and preferably right after the previous one. Use a monthly debit order and build up a special fund in a dedicated bank account. Don’t rely on your 13th check (you may not get one) to get through the festive season! It’s a well-known fact that the biggest problem over the festive season is the indiscriminate use of credit. Use cash or debit cards as you will only be able to spend what you have!
Pay now, go later
If you are planning a trip, book and pay early in the year. December is the most expensive time of the year for holidays. If you did not budget for a festive season trip, stay at home. A stay-at-home holiday will help you save money for a cheaper, more extended trip later in the year.
Buy now, give later
“Christmas is the season of peace and goodwill, till you go shopping and get the bill.” So, rather buy gifts throughout the year or at least three months in advance. However, keep the gift-giving within limits, especially gifts for children. Set a limit on how much you are going to spend and stick to it. Better still, concentrate on inexpensive, home-made gifts or get the family to donate to a charity instead of buying gifts. Some families only buy gifts for the children while others give one gift per family.
Adjust expensive traditions now
Traditions are what make holidays special but buying gifts, entertaining friends and family and other holiday-themed activities during December can all add up to destroy your budget and place you in the queue for extra funds at your local bank in January.
Few of us can afford to entertain 30 guests with roast leg of lamb and all the trimmings. Make the traditional wining and dining a combined effort and let everyone contribute something.
Make cheaper events and traditions part of your celebration. For example, with our perfect weather cheap outdoor activities such as hikes and picnics, pool parties, brunches and “braais” are perfect alternatives. After all, traditions are not only about what you spend, but about the time you spend together.
Sources
Christmas is coming! – 20 Christmas money saving tips. Retrieved from: http://www.humblesavers.com/christmas-is-coming-20-quick-money-saving-tips-to-get-you-through-the-festive-season/
Tips for saving during the festive season. Retrieved from: http://www.moneyweb.co.za/archive/tips-for-saving-during-the-festive-season/
Twelve Christmas quotes – the financial variety. 2013. Retrieved from: http://www.humblesavers.com/12-christmas-quotes-the-financial-variety/
Wasserman, H. How to save money this festive season. Retrieved from: http://www.fin24.com/Money/Money-Clinic/How-to-save-money-this-festive-season-20101116