10 Tips To Avoid Overspending This Festive

10 Tips To Avoid Overspending This Festive. Many of us get tempted to spend after a long year of working hard. This habit often leave many of us broke come January. The following tips can help you to avoid falling into the trap of overspending, o matter how sweet the deals look.

1. Create A Holiday Shopping Budget

Look carefully at your overall savings and budget to see how much money you can allocate to holiday purchases this year. Then make a list of everything you need to buy or spend money on.

2. Track Your Spending

It’s not useful to set a budget if you’re not going to track it. The most foolproof way to do this is to put aside the budget in an envelope and once it’s gone, you’re done. You can even use a credit card with this system. When you buy something online, just transfer the amount from your budget envelope into your bank account.

3. Pay for Your Holiday Early In The Year

Booking a holiday in advance is the key to finding a bargain. It is unusual to find such attractive offers for last-minute holiday packages, so booking early is the best way to take advantage of better prices. Compare the deal you are considering online before you book to ensure that you are paying the lowest possible price.

4. Start A Stokvel With Friends

Stokvels have grown and adapted to come more in line with society’s changing needs and it has become a useful method for saving among friends and families. An amount is saved collectively to get the most out of compound interest and a payout will be made at an agreed time

5. Pay Cash

Many of us get carried away easily with our purchases, especially for credit card owners. Wherever possible, pay for everything by cash instead of credit card. This will help you avoid all the fees and interests that are charged to your card, and avoid the surprise of finding out that you actually spent more than you should when your credit statement comes in.

6. Be Strategic About What You Buy and When

Some shoppers like to check everything off their list on high-profile shopping days like Black Friday. While you will find good deals those days for things like electronics, apparel and beauty products, you’ll get even better prices on items like toys and outerwear if you wait until later in December.

7. Look for Deals But Never Buy on Impulse

As you search for that perfect gift, try to find the best deal on that item. But if you come across a gift shop that promotes holiday “deals”, you might be tempted to buy more items than you need just because they are available at discounted rates. Be mindful of your budget and decide if that something extra is necessary and worthy of your purchase.

8. Take Advantage of Early Deals

It goes without saying that the festive season, prices go low. A great way of knowing when it’s is a good time to buy is to use the Internet and mobile apps dedicated to shopping deals. The best way to avoid debt is to take advantage of early discounts and price cuts.

9. Don’t Overgive

The spirit of generosity during the holidays can be contagious, but you really don’t have to purchase presents for everyone you know, or spend as much as others do on gifts. Instead, consider creating homemade gifts for those close to you.

10. Make Good Use of Your Year-End Bonus

Instead of spending your bonus over the holidays, use a percentage of that to settle small debts which will improve your cash flow. Save some of it to see you through the long month of ‘Janu-Worry’.