How to spend money wisely this festive season

How to spend money wisely this festive season

Many people in December go on a spending spree, then come January, they are broke. Here is how you can ensure you enter the new year being financially sound.

Man spending money on Christmas
Man spending money on Christmas / iStock

The holiday season means a lot of people are home and need to be entertained.

It is usually this time of the year where families gather and there are a lot of parties and celebrations. All these gatherings require food and drinks and that can be costly.

Those not hosting can also go on vacation or go to recreational places. This, too, is costly.

But, with proper planning, you can still have fun in December and be financially responsible.

Let us look at six ways to ensure you use your money wisely this festive season.

READ: Tips to cope with not seeing your loved ones this festive season

Do not buy to impress

One of the worst mistakes you can do is to buy things you do not need or can’t afford just to impress your family and friends or peers.

Using your money wisely means realising what is important and worth spending money on.

Avoid last minute shopping

Last minute shopping comes with pressure. Many stores have sales leading up to Christmas, but you might find some of the items not available if you wait until it’s too late. This will then lead to you having to go to stores where things are more costly.  

Save for January

Make sure that you don’t start the new year broke and without money for essentials and petrol to go to work.

If you need to buy school uniform and stationery, rather do it in December to ensure that you don’t have to worry about that in January.

Also, remember to put aside money for fees etc.

If you get paid early, pay your debit orders

A lot of people get paid earlier in December. The wise thing to do is to calculate your debit orders and make sure you have money in your bank account so that you don’t find yourself defaulting on payments.

Have a set budget for entertainment and stick to it

Decide how much you want to spend on entertainment, food, and all festive activities and stick to it. If this means you have to decline certain invites because you don’t have enough money, so be it.

READ: COVID-19: Three smart ways to ensure your guests are safe around your house

Don’t buy expensive gifts

Have a budget for gifts and stick to it. If you are low on cash, look at DIY gifts on the internet and choose one you can do. 

Image courtesy of iStock/ @Kerkez

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