Five saving tips for this year’s festive season

Although the holiday and festive season is still a few months away, shopping centres are already starting to promote festive season spending. It is time to start planning for the silly season. Without a holiday spending game-plan you can quickly find yourself in trouble.

“Even though you might be relaxed during the holiday season, there is no worse time to let budgeting go out of the window. Knowing exactly what you are buying and for who or why, should always be the first step in holiday spending. We are not only fighting against store displays but also our inability to remain financially disciplined as well as the excitement that comes with this time of year,” says Eunice Sibiya, Head of FNB Consumer Education.

Sibiya says that it is critical to carry the right ammunition with you as you get ready to enter the holiday spending battleground.

Pay yourself first

Under no circumstances is the holiday season allowed to deter you from saving. When you receive your salary, make sure you put the same amount into your savings account as usual and don’t forget to save a portion of your bonus too.

“There is no denying that it is harder to save over this period particularly if you didn’t put money away throughout the rest for the year. That is why budgeting is key,” says Sibiya.

Without a budget you’ll be seeing red

Irrespective of how many bargains are out there, the December ‘only comes once a year’ excuse is not good enough to abandon your budget. Remember to allocate the appropriate funds to all the extra costs when you plan for this holiday – this should include fixed costs of every month and additional items such as entertainment when on holiday. Make room for a contingency amount too in the event that you have to spend more than planned – it is better to have budgeted for overspending than to have to use savings or push your accounts into the red.

Put away the plastic

We all know how easy and convenient it is to pull out our cards to swipe for a “don’t worry, it’s on me” evening or that “buy-one-get-one-free” offer. Be cautious! Implement little tricks such as only taking the amount you budgeted for in your wallet for your evening out – if your money has run out it is time to head home. Also don’t always offer to pay with the idea that your friends will pay you back – you might end up having to wait and beg for money that you need desperately.

Shop alone

Making a social affair out of shopping can lead to overspending easily. You need to avoid “how-about-a-coffee?” invitations. Be effective and rather shop alone if this will help curb the temptations.

“If you set out to do your gift shopping in particular, leave the kids at home. This will reduce your distractions and help you to stick to your shopping list and budget as there won’t be those “Mommy, can I have this,” temptations,” suggest Sibiya.

Let gifting be lighter on the pocket

Affordable gifts that are useful and good quality might be hard to find so consider changing the way in which your family and friends approach gift buying. Unleash your children’s creative juices by encouraging them to make presents for their friends and cousins as opposed to buying gifts. This creates the culture that it is not “all about the gift” but that it’s truly the thought that counts.

“There are clever ways to approach gift buying if you are able to spend a bit more. Consider a gift that can be shared between children like board games or sporting equipment. Alternatively you can buy a memory, budget permitting of course, like a family day at a theme park, a hot air balloon ride or perhaps a 4 x 4 adventure. If you already fear what finances will look like in January, buy a gift towards the new school year such education toys, art material or a nice sports bag – it is a way of cutting future costs and investing in their education,” suggests Sibiya.

When buying gifts for adults, how about doing the age old ‘Secret Santa’ to save money? All the adults taking part put their names in a hat and draw a person’s name for who they will buy a gift. The group can decide on a monetary limit for the gift to keep everything fair. You can also create a “wish list” from which your loved ones can buy from, either as individuals or a group. This way you’re assured of getting something you really want.

“Remember that only you are in charge of your finances. Don’t open store accounts because you can’t afford presents you think you should be buying and don’t spend just for the sake of spending. Instead, go into this season armed with a budget and an effective spending strategy,” concludes Sibiya.