All of us look forward to the holiday season, wanting to make the most of the experience with our family and friends. However, doing so without planning ahead can leave us in more debt leading into the year ahead.
Wikus Olivier, debt counsellor at Debtsafe shares 6 tips to implement this December, so you can enjoy a debt-free season.
Have a plan
Festive shopping often leaves us tempted to spend out of our budget rules. Having a plan, alongside a list of your holiday needs and wants, will add structure and assist you to stick to your allocated spend.
Set a budget
Trying to keep up with family and friends can often mean that you spend far more than you can afford. Knowing exactly how much money you can spend over the holiday season and where it is being allocated, will allow you to keep on track throughout the festivities.
Manage expectations
Once you have a plan in place and have set a budget, sit down with your partner or family and tell them about your spending plans. Explain how you allocated each amount, if need be. This will help you all avoid disappointment and expectations.
Start early
Along with the holiday season often comes the inflation of prices. Purchasing gifts or paying for getaways in advance can often work out cheaper than taking action at the last minute. Many outlets tend to reduce prices after the holiday season to flush remaining stock. Purchasing throughout the year in preparation for the festive season may also be a good idea for next year.
Sales
Sales can help you save money in the long run. It may mean adjusting your gift list and buying alternative gifts; however, this can also allow you to have more to spend in your overall festive budget.
Swear off credit cards
When we can’t afford something we really want, we often turn to our credit cards. Try to make it a rule to only purchase items in cash, especially during the festive season. If you cannot afford it in cash, then you should not buy it at all.
