With the festive season in full swing means you will be spending more money than usual. Which is why it is super important to budget as it is an important part of being financially responsible. It is something that you should be doing every month. But December is where drawing up a budget is most important because you’re either going to be getting your salary earlier than usual or you are expecting a bonus which is often spent during this time of the year on gifts or Christmas shopping.
According to Sanlam, during the festive period about 75% of individuals cited ‘financial worries’ as their main concern. These worries are amplified over the festive season due to the extended time between paydays and additional expenses piling up.
“I feel a major sense of FOMO (Fear Of Missing Out), jealousy and envy,” said one survey respondent when asked how financial stress impacts their life. “I see others doing cool things, and I feel alone, like I am losing out on friendships.”
Although the holiday season comes with loads of expenses it should not feel like a burden where one has to overspend or live beyond their means. This time of the season can also be spent within your budget or less and still have a good time with your friends and family.
According to Farzana Botha, Segment Solutions Manager at Sanlam Savings, here are top three financial hacks to help manage your finances and step into the new year with confidence.
Have a flexible spending plan: This will allow you to enjoy spontaneous and planned activities without exceeding your budget. You can – and should – have fun but remember that everything is a trade-off. If you spend more than you have now, you might have to sacrifice something else down the line. Understand the trade-offs and decide what activities you can comfortably afford, and which might come at the expense of something else.
Shop in bulk for groceries and everyday items: Avoid quick, unplanned shopping trips! These often end up costing more in the long run as we are tempted to buy additional, often unnecessary items.
Maximise your rewards programmes: According to the 2022 Truth & BrandMapp Loyalty Whitepaper 73% of South Africans use loyalty programmes consistently, with an average of 9 programmes per person. You probably have rewards with your bank or insurer that offer vouchers and discounts at retailers – make sure you are aware of these benefits and actively taking advantage of them.
With South Africans spending an average of 3 ½ hours a day online, you may well be faced with a serious case of festive season FOMO. Especially with friends showing off every cocktail, meal, party, and holiday on Instagram! Research shows that social media-based unrealistic and curated highlights of people’s lives can tempt you to splurge on things you cannot afford.
A digital detox is a good idea for your mental health at any time of the year, and even more so over the festive season. Consider making it part of your holiday itinerary. Put down your phone, spend time making memories with friends and family and enjoy the multitude of activities that don’t cost you a cent. Sometimes the best things in life really are free! If you can’t face a digital detox, Botha suggests using social media wisely to learn clever ways to enjoy things without having to spend money you don’t have.
Don’t let festive season FOMO ruin your financial well-being and peace of mind and leave you starting a new year with old debt or depleted savings. Embracing your inner ‘goblin mode’ might not be a bad idea in the cluttered and busy world of today.
Also see: Christmas on a Budget
