The festive season is notorious for splurging cash while enjoying your money with loved ones. But bad spending habits can result in debt and can cause stress and inconvenience.
Miway Insurance has put together some handy tips to help you keep your festive finances in check:
DECREASE YOUR DEBT
Developing good habits is a skill all on its own. Beating the budgeting blues requires a conscious effort to cut back, clear and measurable outcomes, and an understanding of exactly what you are saving for.
PAY OFF DEBT
Gradually work your way out of debt by prioritising paying off as much debt as you can each month, instead of the minimum amount payable. If you're lucky enough to get an annual bonus or a 13th cheque, use the cash wisely by paying off your loans, making an investment or putting some aside for a rainy day.
CURB HOLIDAY SPENDING
While it's likely that you will spend more than you might in other months, it's vital that you take stock of exactly what you have available to you, and revise your budget to accommodate extra expenses, rather than simply writing December off as "one of those things".
You can dial down the debt by employing alternative gifting strategies, like Secret Santa systems, which require each person to buy just one present, rather than a wide array of costly gifts.
To avoid temptation, consider taking your shopping online, where the shiniest new gadgets and tempting toys aren't on full display to deter you from your carefully crafted list.
SAY NO TO CREDIT
In the run-up to Christmas, there are plenty of enticing credit and "no deposit" deals that can tempt you into splashing out on expensive gifts you can't really afford. But in the long run, credit leaves you with a higher price to pay and costs you more in interest repayments over the longer term.
Rather say no to credit and stick to items you can afford. Carry cash as much as possible as counting every cent makes you think twice about spending impulsively. Draw out your weekly budget from the ATM to make unnecessary and excessive spending a little less easy.
PLAN AHEAD
Planning your festive season well in advance will not only save you money, but it will also ensure that you start 2018 on a strong financial foot.
