December is officially in full swing and family gatherings, festive gifts and holiday trips are what the whole country is buzzing about.
With all of these activities on the horizon, it’s easy to lose track and have the festivities burn a big hole in your pocket.
Whether you’re keen on lunch and dinner dates, road-tripping with friends, family holidays or looking to expand your summer wardrobe, the first thing you should think about is your budget.
You don’t want to be caught slipping in January when bills need to be paid and your bank account has run dry.
TRUELOVE spoke to Rapule Mahlangu, head of associations and affinity groups at Metropolitan, to give us all the tips and tricks to enjoy the holiday season while keeping your finances in check.
1. Preparation is key
When it comes to spending during the festive season, many fall victim to the sale traps thinking their saving money by purchasing more than what is needed.
Writing down what you need and your budget before hunting for sales is an ideal way to help limit your spending.
“It can be tempting to buy exciting items that you don't need and find yourself in financial difficulty in the next few weeks. You can maximise specials by buying non-perishables and general household items in bulk, also by buying school items on special to decrease your burden for January,” Rapule advises.
“Another way to make the most of this time is to use 48 hours as time to consider items that are a splurge. This will happy you assess objectively if it is something you actually need and if you can afford it at this time.”
READ MORE | How to beat the sale trap plus 4 tips to avoid overspending
2. Use your November and December pay wisely
Once those end-of-year salaries hit, it can be tempting to start splurging.
To avoid this – and especially for those who may have been late on building up their savings – Rapule shares the importance of planning and setting aside a small portion of your last salaries for the new year.
“Plan what your holiday season looks like and list the big ticket items that you will need to purchase over this time. Based on your needs (and not wants) do research specifically on those items to get the best deal.
“Additionally, set aside a small portion of your salary prior to the sales kicking off as extra funds for January. Even though this time can be exciting, and we all love the dopamine rush of getting a great deal, the reality is that January comes with financial responsibilities too. You may be late with saving for sales but you are early to saving for a better 2024.”
- Get honest with yourself and your loved ones about what you can afford this year. Managing expectations beforehand means that you can enjoy the season within your budget.
- Use the different pockets of your bank account to help manage your budgets during this season. It will also help you avoid the JanuWorry trap.
- Get comfortable saying no to outings, parties, and activities that will deplete your budget. Unexpected expenses can undo the most well-thought-out budgets.
3. Save on fuel
For those travelling this season, fuel can be one of the biggest expenses to budget for, leaving you stressed about the upcoming trip.
Little things like avoiding speeding and packing lightly can give your car – and your pockets – a much-needed break from burning fuel and money.
“While the roads over the festive season can be extremely congested and frustrating for drivers, reckless driving and excessive speed only serve to increase your consumption and deplete your wallet.
“Maintain a steady speed, accelerate gently, reduce unnecessary weight in your vehicle and, if you can, switch off your air conditioning. Don‘t forget to obey the speed limits - they not only help you save fuel but keep you safe.”
4. Fun and family gatherings on a budget
With schools closing and exams ending, kids home for the holidays can leave you tempted to splurge and indulge in family activities and excursions. But saving money on organising group outings or bringing the whole family together to divide the expenses can help lighten the load.
“It’s not always necessary to rack up big bills on eating out or going on expensive excursions. Some of the most memorable times are simply lazy days spent on the beach or the park or around the pool with friends and family,” Rapule explains.
“If you’re hosting your family’s festive celebrations, this is a great time to harness the power of your collective with a truly communal gathering.”
READ MORE | Struggling with impulsive spending, bad debt and more? - 5 easy tips on how to save money
5. Review and balance your expenses for the new year
While December living is a lifestyle in Mzansi, a new day dawns in the year as many fall victim to the struggles of ‘Januworry’.
Sharing a few tips on how you can supplement yourself after the festive season, Rapule says, “Review all of your policies and general outgoing expenses to see if you can get a better deal before the new year and free up some cash flow in the new year.
“Start your year on a fresh note by selling clothes that don't fit or aren't right for you anymore. Use your skills to kickstart your side hustle after your 9-to-5. This is a great way to minimise temptation to spend more and to actually bring extra income in.”
