Do you have time to save for Christmas 2016?

Christmas is nearly upon us, and the retailers are rubbing their hands in delight.

According to a November poll conducted by Gallup, the average shopper spent an average of $830 on gifts last year. Of all those surveyed, 30 percent, however, spent over $1,000. We really do like to indulge at Christmas time. And why not – it is the only time of year we can be a little lavish. However, some people are splashing out to their own detriment. January blues isn’t so-named because of the cold – many families find themselves in very difficult financial circumstances because they simply overspent at Christmas time. Don’t be one of those people that suffers through the year for the sake of a ‘better’ Christmas – by being savvy, organised and financially literate, you can enjoy Christmas on a budget and not worry about it for the rest of 2017.

READ: Festive Debt: Why Financial Education is Essential this Holiday Season

Saving

Of course you’ll want to dip into your savings at Christmas time to help cover the cost of all those little extras. Wonga ZA’s money academy talks about the importance of saving throughout the year; they say that saving is a very important part of living a healthy financial life, “It may seem hard to do at first, but once you understand its true benefits – and how you can get started – you’ll realise that saving really puts power in your hands.” By saving properly, you’ll avoid a cycle of debt that many people find themselves in.

Saving this close to Christmas is possible – you still have one month’s pay check to come, after all. Some people even get paid early in December to help cover the Christmas costs. The first thing you should do is create a spreadsheet of incomings and outgoings of your current account and see whether you actually have anything to spare. If you find some money which is unused, transfer it to a specific savings account. This not only helps you get better interest rates, but it can separate the money for you so you know how much you have to work with.

Getting credit

As it is close to Christmas, some of you may be considering getting a credit card or loan. This is a viable option IF you have properly researched the financial product and can afford repayments. Payday loan company Wonga say that there’s three questions you should ask when getting a loan, do you need it? Can you afford it? And how much will it cost you overall? This is really helpful when making your credit decision. Do you really want to be paying off this Christmas, next Christmas? How much do you really need to buy those expensive gifts? On the other hand, credit might be a good option if savings are scarce and you need some cash to tide you over until the next pay day. As long as you are sensible about what you are borrowing, credit could be a temporary option.

 READ: Retail credit cards: Wendy on a new charge in store for you