The holidays are here with us again - the time for giving and sharing of gifts with family and friends. However, as much as we want to celebrate and be jolly during this festive season, the elephant in the room is usually money related. There never seems to be enough financial resources to satisfy our wants and needs over the festive period.
Here are some tips to help you not go overboard and start having regrets come January 2016.
Make a budget
This is the best way to have a guideline on how much you are wiling to spend. Any wise person would have started saving at the beginning of the year or at the very latest, mid year. The budget should be inclusive of food, travel (if any), drinks, gifts, clothing and some provision for miscellaneous expenses.
Have a list for gifts
List the people who you are going to buy a Christmas gift for. Then think of the gifts to buy them. It does not have to be an expensive gift. It could even be a babysitting voucher of your time for a new mum who can redeem it even in the New Year. It really is the thought that counts. For kids, don’t go overboard on very expensive toys that might not even last to see the new year.
Use cash only
I can’t emphasise this enough. Credit cards delude us into thinking we have more money than we actual do and could mean doom when paying back interest. Make this easier by spending cash instead of using a card. If you must use a card, make it debit card and only load the money you will use. Alternatively, you can go old school and emulate your mother and use envelopes. Lol. Divide up the money into small envelopes and label them with what you’ll use the money for. Carry only the required envelope when its time to purchase that particular item.
Avoid impulse buys
It’s very easy to get swept up in the holiday spirit when everything in the mall screams ‘buy me! Buy me!’. Hahaha. Carry only the money you need to do your shopping and leave. OK, one ice-cream for the kids will not hurt. Christmas cheer all round can easily derail you. Don’t be fooled into buying things you don’t need.
Continually review spending against budget
Carry your budget with you to the shops. For each actual purchase that you make, update your budget with the actual money spent. If you have gone above your budget on some items, then you’ll have to lower the spending on other items to make up for the differences. Likewise, if you make some savings on certain items, then you’ll have more money to top up on other items. Do this continually until you have done all your shopping and if you have some money still left over, then you can treat yourself for a job well done!
Have guests bring a potluck
Christmas brings about a festive mood that includes hosting guests. One, don’t have an impromptu get together. This will cost you money that you have not budgeted for. Don’t try it. You will cry in January when you look at your bank balance. For those who have planned to invite some family and friends over, don’t be ashamed to ask that they bring a dish or some drinks. This will spread the financial load and time spent in the kitchen. There’ll be more time to chat and make merry.
Store your Christmas decorations
A lot of Christmas decorations are not stored well after use resulting in purchase of decorations annually. This is very costly. Buy quality decorations and ensure that after the festivities, they are packed properly in their boxes. This will mean that there is no need to replace them year after year. Go green also and buy a faux Christmas tree that will last you ages. Place all decorations in a storage place that won’t be disturbed by persons or weather especially water.
Keep some money for emergencies
As much as we are on a budget, this is very important especially for those who do not have medical insurance. Anything could happen and you do not want to be caught off guard. For those who are travelling, this cannot be emphasised enough. Be prepared. And no, running out of alcohol does not constitute an emergency!
Happy Holidays!