Planning your spending for the Festive Period

When it comes to Christmas spending, we all like to indulge a little. And if you have the money available, why not? But for those people who will struggle through the first half of 2017 due to excessive Christmas spending, it might be wise to plan ahead now.

1. Think about how much you can really afford. The first thing to do is think about how much you want to spend, and then how much you can AFFORD to spend. Stashing purchases on credit cards is likely to be detrimental in the long run, however easy it is to do so. So, set a limit, and stick to it.

2. Write lists. Lists are great. They can help you to see in black and white what needs buying, where you are spending too much and how even the distribution of spending is. E.g. spending a lot of money on a present for a sister, but only loose change on your Christmas lunch.

3. Be fair but frank. Of course you want to buy gifts for your loved ones; we are not suggesting you refrain from doing so. Instead, think fairly about what you can afford and what you could spare. Just because someone gets a present for you, doesn’t mean you are bound to get one for them. This kind of pressure buying drives many people into spending thousands on Christmas. This post talks about creating a No Unnecessary Present Pact (Nupp) with friends, or at least agree to a Secret Santa or R50 to  R100 cap on gifts.

4. Ask yourself three questions. Wonga ZA, a payday loan provider in South Africa, suggest asking three frank questions before making ANY Christmas purchase. This includes, do you need it? Can you afford it? How much will it cost you overall? The third question is probably one of the most enlightening because if you are using credit to buy a gift, you might be paying high interest fees on your purchase, which could make you double-think your shopping bag.

5. Get a good deal. You can find some great bargains by shopping online, finding discount codes and planning ahead. Team up with other parents to make the most out of 3 for 2 on toys sales pre-Christmas – this can really be beneficial and save you all a lot of money.

6. Remember it’s NOT about the presents. It’s easy to get wrapped up in the Christmas buying buzz. You want everything to be perfect – but will that extra decoration make your Christmas any more or less perfect than it would have been? Isn’t the true meaning of Christmas to spend time with friends and family, eat good food and reflect on your year?

Also read: Fantastic stepdad gets adoption papers as a Christmas present