The festive season is upon us, this to most of us means shopping, sending money to family, sharing gifts, family visits, and a lot of spending! As we spend, we must have in mind that, there is life after the festive season.
Typically, people are paid earlier in December as compared to other months. Say, you’re usually paid on the 27th of every month, but in December, you get paid on the 15th, remember in January you will be back to your default payment date of 27th. This makes January the longest month of the year for most of us; the more reason we should be prudent when spending in December. Our spending habits during the festive season will determine the aftermath.
Below are a few tips we can apply this season;
1. Plan your spending – the most vital thing to do is have a budget – we have extensively talked of budgeting, its importance, and how to prepare one previously here (Let’s talk about personal budget). It is important to plan your finances; a budget or spending plan will be a great guide. Work within your budget, set a spending limit, adjust if need be, but make sure not to spend outside your budget.
2. Make a shopping list – the festive season is coupled with a lot of shopping, be sure to always have a shopping list. Avoid impulse buying as much as you can. Don’t be swayed by discount sales, ‘reduced to clear’, ‘buy one get one free’, and all the promotions that come during this season. Only buy things you have budgeted for.
3. Have an Itinerary – plan the entire season especially if you intend to travel, an itinerary will help you to be more organised and manage your spending. As much as you can, decline invitations that are unplanned.
4. Be Realistic – don’t try to impress anyone; look at where you stand financially and make spending decisions based on your financial position.
Let’s go into the new year with zero new debts, while we work on repaying outstanding debts! More on debt management here.