Tips to spend the festive season on a budget

1POLOKWANE – Financial adviser Neil Anderson from Anderson and Associates says when you need to spend the Christmas holidays on a budget, the starting point should be drawing up a budget and sticking to it.

Neil says to always remember to only spend money that you have to avoid overspending.

“When drawing up your budget you should remember to calculate your January needs first and set that money aside. If possible, pay extra on expenses such as rent. Another suggestion would be to buy day-to-day items in bulk so that you don’t run out of them in January as you wait for payday. The money that you put aside should also be inaccessible to you because for as long as you can reach, it you will blow it.”

He advises people to take into consideration that the pay check most of us receive early December, in time for the holidays, needs to last through to the end of January. “There is a high demand for money in January due to the new school year and just generally the new year. Spending the holidays on a budget means going back to basics and separating the needs from the wants. There are many ways to enjoy the holidays without spending too much money.”

Neil adds it would be wiser to make small changes such as buying more educational and long-lasting gifts. “Alternatively, buy your summer clothes in winter and your winter clothes in summer. Because of the festive mood, most of us become picky and end up spending without checking the prices.”

Neil says it is also wise to open a separate bank account for saving purposes.