Summer is in full swing, exams are over and that can only mean one thing #keDezembaboss! Ask anyone and they’ll tell you that December is the month to party like a rock star, eat like there’s no tomorrow and drink like a fish ‘cause you gotta stay hydrated… right? Our social life is at an all-time high but the same can’t be said about our bank accounts and finances. The reality is that people tend to overspend during this time of year. By the time January comes they bank balances is sitting at R 0.00. So how can you avoid going broke this festive season?
Create a budget
In order to avoid overspending, you need to be honest with yourself when it comes to your finances. Draw up a budget that includes your monthly expenses like your rent. Then include the expenses that you would like to spend for that month. For instance allocate the amount of money you want to spend on entertainment, presents, Christmas clothes etc. Ensure that the once your budget is done, you stick to it.
Use cash instead
There’s just something about seeing money physically part of you that usually results in a person spending less versus when they use their card. Just make sure that the money you withdraw is the exact amount you need. For instance, if you set aside R500 for entertainment. Only withdraw that amount and not a penny more.
Too many people fall victim to how much they saved when they brought things on sales but don’t look at how much they just spent on those items. Sales are great but make sure that you don’t fall into the trap of buying things just because it’s on sale. Ensure that you compare prices because some stores claim that the item is marked down but in actual reality isn’t. Remember the golden rule – stick to your budget!
Ask friends and family to bring food and drinks to events
A great way to cut cost when you hosting a young event is to ask your friends or family to bring food and drinks. Just make sure that you have balanced amount of people bringing food and those bringing drinks.
Don’t be too hospitable
If you are expecting visitors, make sure they don’t eat you out of House & Home. You don’t want to ruin your finances because of them.
Stop trying to impress people
There’s a very real pressure of showing our family and friends that we have made it financially. So we buy expensive things that we honestly really can’t afford. Stop doing that. It’s okay to buy things that are within your budget.
Start planning for December
Start now to plan for next year. Open up a savings account and put money aside throughout the year. So that when December comes you can party without any worry in the world. Just make sure that when the festive season comes around again that you don’t completely forget about your good financial habits.