10 Financial Tips To Avoid Going Broke Come January

10 Financial Tips To Avoid Going Broke Come January

1. Set Your Spend Limit

Planning is an important element when it comes to saving money. Since you cannot avoid spending money during this time because of gifts you have to buy or travel expenses, you need to set a limit on how much you can spend over the holidays.

2. Plan Ahead

You need to remember that you still have bills to pay come January. It is therefore important to ensure that you plan your money in a way that ensures you have enough cash to spend on your bills in January. Keep in mind that your financial habits during this festive season will determine whether you go through January broke or not.

3. Avoid Taking Loans

Most institutions take advantage of the holiday season to offer small short term loans as well as holiday packages. This is not necessarily such a good thing considering you will have more to pay back come next year. During this festive season you should avoid taking loans so that you don’t have any debts come January.

4. Don’t Spend more Than You Earn

Most people make the mistake of spending money they do not have. We are all victims when it comes to spending more than you earn. There is no point in trying to keep up a lifestyle you cannot afford. Do not borrow money to spend on things that will not provide you with income. You will be better off in January if you do not have any pending debts to pay.

5. Avoid the “shopping momentum effect”

This is actually a thing. You know the natural high you get when you buy something? Studies show that dopamine is released when you shop, this leads you to want to shop more even if you are giving away what you are buying. For some people, buying just one thing can spiral into a major spree. To avoid this, try to take a break after a purchase.

6. Don’t Buy New Clothes For All The Parties

It is very tempting to go out and buy a ton of new outfits when you’re attending a bunch of parties with overlapping attendees, but instead try to just accessorize a few solid pieces. Try adding a colorful statement necklace and matching heels, or an embellished jacket and ankle boots.

7. Kickstart Those Savings

Don’t underestimate the power of saving. A bit of extra cash at the end of the year is a great way to start a tax-free savings plan, even if you put only R1 000 aside. You’ll reap the rewards by this time next year when the amount has grown nicely.

8.Use Your Talents To Explore Opportunities

Everyone has a talent if you have discovered your, the better. You need to figure out what you are good at and how you can use that to earn money.
For example; if you are a good DJ, even if you have formal employment, you can play gigs on weekend to earn extra money. As a baker you can start selling what you bake.

9. Pick Up Some Extra Work

If you want to make a little more money over the holidays, there are usually opportunities with retailers, if you have previous experience. If you have any social networking, editing, or Web development skills try,, and to find paid work.

10. Stick to New Year’s Resolutions (at least for January)

Many of us make New Year’s Resolutions, only a few of us actually see them through the whole year. If your resolutions follow the usual pattern though you could save money in January by sticking to them.

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