We Need To Be Money Smart This Festive Season

The festive season is around the corner and the spending spree is loading. No matter how hard we try, it’s really difficult not to overspend at this time of year.

With a bit of thought and forward planning, you can be level-headed and avoid the financial hangover that often pops in January!

Some tips to make the most of your money over the festive season:

1. If you’re lucky enough to be getting a bonus, make it work for you. It might be thrilling to have a fat bank balance and be able to spend without worry, but how about paying off some short-term debt, saving interest, and freeing up cash in 2023? Or you could invest a portion of it and build up a tidy sum if you do this year after year.

2. Generate some much-needed extra cash by getting rid of items you don’t need anymore – one man’s trash is another man’s treasure they say, and a good few hundred rands could be lurking in your cupboards. Advertise on Gumtree or Facebook Marketplace and cash in!

3. Plan your spending and set up budgets. Draw up a list of who you will buy gifts for and how much you will spend on each person. Don’t add to your list or be tempted to go over your budget. Also, don’t buy gifts on credit. You will still be paying them off long after the enjoyment has faded.

4. When entertaining, club together with family or friends so that the cost of entertaining isn’t falling squarely on your shoulders. Everyone brings something and it’s much more fun. Cut back on expensive snacks and get everyone to bring their own drinks.

5. Avoid massive food wastage. Between 30 and 40% of the food prepared over the festive season ends up in the dustbin according to the African Climate Reality Project. So a chunk of your hard-earned money is literally thrown away! Go back to basics – less is more and avoid the over shopping and over-catering trap.

6. Cut costs where you can, and wrapping paper is a great example. It’s not cheap and literally ends up in the bin. Get creative with gift wrapping and save the money from that.

7. With over half of South Africans saying they receive gifts they don’t use (according to research conducted by Gumtree), it’s no small wonder that gift shopping is a challenge. So how about giving an experience instead? There are so many options to suit all pockets and interests from adventures to chilled activities such as picnics. Give a memory and it will be fondly remembered.

8. If money is tight, a homemade gift such as baked goodies, a recipe in a jar, or even a snack hamper will always be a treat. For the men, including shaving cream and a nice body wash for your friends is a good idea. Also, don’t overlook your local thrift shop for some bargain shopping.

9. Avoid everything last minute – including shopping, or adding people to your Christmas gift list. You will blow your budget and having to face busy, noisy shops or malls will leave you stressed and will probably spend more than you planned just to get out of the shops!

10. Let your fingers do the shopping. Online shopping, whether for gifts or groceries is easy, efficient, and keeps you within budget. There’s very little impulse buying, and you avoid all the tempting in-store displays encouraging you to spend more. The best part of online shopping is that you can see how much you have spent at any point, before you actually checkout and pay. This puts you firmly in control of your spending power!

Every festive season is about sharing special times with loved ones.

Don’t go into debt, be realistic about what you can afford, and focus on making memories with your loved ones, instead of showering them with stuff.

Stuff fades, memories last forever.

This article was written by Sylvia Walker, financial planner, speaker, and author of smartwoman. www.sylviawalker.co.za

Gents, do you normally worry this time of year when it comes to spending and budget during this time? Comment below to let us know x