5 tips for making and sticking to your holiday budget

We all tend to overspend during Christmas and then kick ourselves when January hits us with a dose of reality. Try these tips for a financially easy start to 2019.

Your thirteenth cheque has arrived and you’re itching to blow some cash after a long, hard year. But you’re aware that the New Year-zero-balance struggle is real. Bills won’t go away and, come January 2019, there’ll still be things like electricity and school fees to pay. Here’s what you can do to ensure you don’t spend more than you should:

Getty Images

Have a realistic plan

It’s essential to put together a realistic budget and stick to it. ‘A budget may also include ways  to cut down spending, e.g. using vouchers, looking out for specials on items needed over the festive season, and group discounts on activities or entertainment,’ advises Lettie Mzwinila, business development manager at Allan Gray.

Make Christmas about family time rather than spending

You can get carried away with spending money on food, drinks and other treats. But material goods don’t always equate to a good time. ‘There are so many options that don’t break the bank and will allow you to do so much more. Fill this holiday with more memories and special times with family and friends rather than splurging for one fancy event,” says Nola Rae, author of Money Wit.

Get rid of as much debt as possible

For many, it may not be realistic to say that you should ‘pay off all your debt’. But clearing some of it will put the financial pressure off, come January. ‘Perhaps the thirteenth cheque can be used to pay school fees in full for the next year. Some schools give discounts if you pay upfront. It will make the cash flow easier each month next year, and cheaper overall,” points out Rita Cool, certified financial planner of Alexander Forbes.

Compare prices

If you do want to pay for some presents and contribute towards entertainment, the best way to save money is to compare prices. Ideally, shop online – and at home – where the pressure to make an instant purchase is not as high.

Give yourself a treat!

It’s the festive season after all and few challenges are possible without some kind of a reward. ‘If you’re trying to save and be as responsible as possible with your spending, do allow yourself a little indulgence and you will feel less like you are punishing yourself when you’re trying to save your money,’ says Mzwinila.

By Angelique Ruzicka