The festive season is eagerly anticipated by most as a time of sunshine, socialising and much-needed rest.
Spending time and feasting with your loved ones, exchanging gifts, travelling, and shopping can be fun, but it all needs planning - and it’s costly.
Planning early will enable you to avoid the last-minute shopping frenzy, and over-spending on unnecessary items. Bruce Fleming, certified financial planner (CFP) says that the earlier you start, the better you will be both financially and emotionally.
Tip: Manage your finances better by using our budget calculator.
Make a list and stick to it
In the lead up to Christmas, Fleming points out, you can adopt the following steps to cut costs and save time.
- List the people for whom you wish to buy gifts.
- Create a budget and stick to it.
- Decide on the type of present you want to get, and for whom.
- Buy gifts in advance. This will spread the cost and prevent panic buying around Christmas, when the prices higher and you’re pressed for time.
In planning ahead, keep an eye on sales throughout the year. New Year’s season, Black Friday and other sales periods are good opportunities to nab a bargain.
- Look for sales and match the items to entertainment planning.
Fleming advises the following:
- Plan now what you are going to eat on significant days.
- Start buying your non-perishables and drinks - including alcohol - now. You can also buy turkey and other meats, and freeze them.
- Keep an eye out for specials and deals that stores may be running in the lead up to the festive season.
“By following these simple steps, you can save hundreds of rand and avoid the stress of Christmas shopping. Most importantly, talking to a CFP regularly will ensure that your finances are organised throughout the year, and will help you avoid the festive season crunch,” says Fleming.
Plan for post-Christmas expenses
Many companies pay employees earlier in December. While it is important to plan early for the festive season, you must also take into account post-Christmas expenses. African Bank notes that being paid early in December can mean January is a long and tough month.
“Some consumers resort to using their credit cards with reckless abandon, or choose to take out loans. While these can be helpful, and credit cards can even offer you some worthwhile benefits and rewards over the festive season, it is vital to stay conscious of what you are spending. We suggest that you prepare a budget in order to avoid overspending,” says African Bank.
“The good news is there are still a few weeks left before the end of the year. Now is the time to get smart about your money and plan ahead so you can enjoy your hard-earned cash.”