In a famous 1963 song by Andy Williams, Christmas, now generally termed the ‘yuletide’ or ‘festive season’ is described as the ‘most wonderful time of the year’. It can be a joyful time, but it’s also notorious for putting a strain on your wallet.
For some, January, often described as ‘the longest month’ of the year remains on the mind because of the return to school bills and other financial obligations that come upon us as if by magic.
Remember, if you are the person that keeps track of the money in your household, you deserve a Christmas too – make it one that’s free of stress and worry about debt.
To avoid post-festive season stress, here are some culled tips to guide how we spend and what we spend on over the festive season.
Set a Realistic Budget
• Decide how much you can afford to spend this festive season on gifts, food, decorations, socialising and travel.
• Make a Christmas shopping list
• Use apps or a spreadsheet (or a good old pen and paper!) to track your spending and stay on top of your budget. Prioritise your list. If you have a limited amount of money to spend, what could you cut from the list? Work your way through, numbering items in order of importance. Look at each individual item again to see how you can reduce the cost
• Try not to build your plans on the hope of a bonus or overtime payment. Only include income that you are absolutely certain you will get before work ends for the Christmas holiday. If you can, try to put some money aside for January too, so you have enough to pay your regular bills in the New Year.
Start Early and Spread the Cost
• Avoid last-minute shopping sprees
• Look out for sales/discount deals particularly in large capacity shops to grab bargains early (before they run out)
• Be cautious of online scams by buying from reputable company sites. Many send unwanted notifications to bait you into purchases you don’t need and you could end up being tricked.
Reuse Decorations and other items
• Don’t buy new decorations and Christmas Trees every year; instead, reuse and repurpose items from previous years.
• Check shops for unique, affordable decor or places, where discounts are being provided.
Use Credit Wisely
• Avoid taking on high-interest debt for Christmas shopping. If available, opt for a 0% interest credit card to enable you pay off the balance quickly.
• Steer clear of payday loans or buy-now-pay-later schemes that can trap you in debt.
Plan for Next Year
• Have an account you save into to cover post-holiday expenses.
• If you have nothing saved, think carefully before you borrow. If you really think borrowing is your only option, then here are some things to think about before you do:
– Only borrow what you truly need and not one cent more.
– Before you borrow, look at your list and ask yourself if it is worth getting into debt over this?
The Festive Season is a great time to catchup with family and friends particularly those dearest and nearest. However, remember the reason for the season to avoid unnecessary expenses, which could impact you in the New Year.
