The festive season is a magical time filled with joy and togetherness. However, with shops and malls enticing us to spend, there’s a risk of falling into a financial trap, leading to trouble in January. To fully enjoy the season while safeguarding our finances, it’s essential to set a budget and make wise financial decisions in December. This way, we can join in the festivities without straining our wallets and ensure we are well-prepared for January expenses related to the new school and office year.

Here are some tips:

Assess Your Financial Situation
Review your income, savings, and existing expenses. This overview will guide you in understanding how much you can allocate towards the festive season without straining your finances.

Plan for the New Year
Look beyond festive spending and think about January’s needs: back-to-school stationary and clothes, office supplies, course fees, and annual membership fees (like the gym). Make a list with costs, add it to your budget, and try buying some things early. Be ready for possible price increases.

Spend your Bonus Wisely
If you get extra money in December, like a bonus or from a Stokvel, be smart about it. Plan ahead and decide where your money should go before hitting the shops. First, buy what you really need, and make sure you set aside enough for January expenses. By planning carefully, you can get what you need and still have some money left to enjoy yourself.

Encourage Family Contributions
Involve the whole family in budgeting discussions. Encourage them to contribute ideas and understand the financial aspects of the festive season. This not only teaches valuable lessons but also promotes a sense of shared responsibility.

Embrace Creativity and Resourcefulness
Opt for creative and resourceful ways to celebrate the season without overspending. DIY decorations, homemade gifts, thoughtful gestures and experiences often hold more sentimental value and cost less than store-bought items. Bargain hunt for special deals to cut down expenses even more.

Use Cash or Debit Cards
Avoid buying on credit in favour of using cash or debit cards for your festive spending. This can prevent overspending since it restricts you to the funds available rather than relying on credit cards, which might tempt you to spend beyond your means.

Flexible Emergency Fund
Keep a portion of your budget flexible to accommodate unforeseen expenses or opportunities that might arise during the festive season. This fund will allow you to embrace spontaneous moments without derailing your overall financial plan.

If you know your financial situation is in trouble,  the worst thing you could do is nothing. LifeAssist has financial coaches that can assist you in embracing better financial practices that will help you take care of yourself and your family. Please get in touch and let one of our financial coaches help you move forward.  This service is confidential and available at no cost to you or your family