A change of mind can make you save this festive season
Be responsible during the festive season and ensure that you are still in a good position financially for the beginning of next year.
The silly season comes with a history of excitement and expectation and these festivities are renowned for the toll they take on many consumers’ bank balances.
The result is that these consumers may have to tap into their savings accounts in order to survive the months thereafter. But why is it so difficult to manage expenses during the month of December?
Generally, December is the season that most people take a break from work. Irrespective of whether they are going away or staying at home to relax and unwind, extra cash is usually required.
Year after year, we see family and friends, accompanied by long relaxing dinners and soothing drinks. Gifts are placed under the Christmas tree and people seem to spend much more time doing those fun activates they never got around to during the year.
“The festive season is important to many people. It is not a time where people worry about what they spend, instead, it is a period where we let our hair down and enjoy the end of another year. The issue however always comes in January where many find they have overspent and the next few months are spent trying to pay off expensive debt,” says Aneesa Razack, Head of Strategic Growth at FNB Investment Products.
“The trick is balance,” says Aneesa. “We need to learn how to have fun with the money we actually have available to spend.”
Being aware of the main reasons for an increase in spending will help you make better spending decisions.
Many have an emotional connection to this season. Memories of Christmas’ past bring with it happiness and excitement. When going into stores, people are not just confronted with choices, they see gifts and happiness on the recipients faces. Make sure that you do not overspend when buying gifts. Allocate an amount you can afford per gift and stick to it.
From as early as October, retail stores have displayed their extravagant Christmas decorations, while promoting their Christmas specials. Walking around, you are exposed to all the bells and whistles at discounted prices. Aneesa urges consumers to not end up buying more things than you actually planned for.
“You need to distinguish between what you want and what you really need,” says Annesa.
Many people focus more on how people will react to their gifts than the actual meaning. There is always the fear that your gift will be opened with ‘that’s nice’, while your sister gets an ‘oh wow, I have always wanted this’.
Keep it meaningful, it’s not the amount you spend but the thought that counts.
The festive season is the time of year where family and friends get together.
Watch out that you do not end up playing hostess all season without setting some parameters.
“The end of the season will come and while you have fed and watered your family, you end with only some great memories, crazy photos and a bank account in the red. Do not be afraid to ask your guests to contribute towards expenses, it is easy to bring along an occasional salad or drinks, which will ease your financial responsibilities,” says Aneesa.
