Ways to spend wisely to avoid the January blues

POLOKWANE – Spend wisely this festive season, in order to manage the long days of January in the new year.

When you’re in the presence of loved ones, getting carried away with spending is easy as you may often feel tempted to spoil them.

However, financial planner Robin Lekoloane tells the Polokwane Review- Observer that there are cheaper ways to go about it.

“There are ways around using your 13th cheque wisely to avoid being broke by the mid to end of January,” she said.

1. Plan what you are going to be spending your money on.

Before you use your money to enjoy the festivities, draw up a list of necessities and luxuries.
These include rent, credit installments, utility bills, school fees, groceries etc. Luxuries include new clothing, alcohol, holiday money, gifts etc.

“It is thee best way to ensure that you do not have to worry about your financial obligations come the end of the year,” she said.

2. Track your spending

Once you’ve drawn up your budget and paid all your debts, keep track of your daily and/or weekly expenses.
Keep your receipts, check your bank transactions. This way you can keep track of the money leaving your wallet and prevent yourself from overspending and ruining this month’s and next month’s budget.

3. Control your spending

Make sure that you spend within your financial means.

“If you have already been saving for the end of the year, now is the time to use your designated end-of-year savings fund, but if you have not saved for December, you will have to find ways to make and use money elsewhere so that you can continue to celebrate the festivities without breaking the bank.”

4. Choose quality time over expensive gifts

Perhaps the best present to give someone is your presence.

“In that way you are able to save money that would have been spent on buying a gift instead of intentionally spending time with that person.”

5. Resist retail marketing schemes

Last year, the average South African adult spent R6 5585 on Christmas gifts, a statistic that is hoping to drop to R4 432, as per surveys.

“Don’t get wrapped up in all the sales and spending marketing schemes thrown your way. A philosophy which you can try when you are in the shopping mall, window shopping or even just browsing online stores is ‘admire but don’t desire’.”

6. Use old gift cards

Try to remember where you put all those gift cards you were gifted months or years ago. Once you’ve located them, use them!

Use them for yourself, for your friends, for your family. Make the most of them before they expire. Be sure that whatever you decide to send it on does not go beyond the value of the gift card.

7. Gift in groups

A big, expensive gift doesn’t have to be off the table just because you’re working with a budget this year. Instead, go halfsies with someone else.

“Get all your siblings in on buying one big gift for your parents. Ask your colleagues to club together for a nice gift card for your manager. Contact the parents in your kids’ class to put small items together to build a gift basket for your kids’ teacher.”

8. Repurpose gifts

Repurposing old gifts is another way to regift things that are in your home but you’ve never used in the past and don’t see yourself using in the near future.

“This is the perfect way to get rid of the unnecessary items in your house while gifting someone with something that has never been used. It’s killing two birds with one stone.

9. Make presents

The way to steal someone’s heart is by putting in the effort to do so.

“A small, personal and memorable gift made from your own hands can mean so much more to the receiver than a large and expensive gift.”