Overspending leading up to December
Lechedzani Pitso | Monday November 3, 2014 16:58
We usually get paid early in December and have to wait until the end of January to get paid again.
This can be six to seven weeks between salaries. We also have the tendency to spend all of our bonuses as a “treat fund” to spoil ourselves, instead of using it to help bridge this gap between salaries.
When you consider all these factors, you realise how important it is to carefully budget and plan all your spending wisely for your next three salaries.
Write list of what you need to buy Aside from your usual budget that covers all your common monthly expenses, write a list of additional things you need to spend money on leading up to the holidays, and include your Christmas expenses.
Arrange your social engagements now
Get together with your family and friends now and talk to them about your social engagements over the festive season. Plan each social engagement now, this way everyone will know which occasions they are responsible for financially. Then as a group work out how you can reduce the costs of socialising at this time. By planning in advance, you, your family and your friends can all save money by only having to buy the food for the days they are responsible for hosting.
Specials
Beware of the Christmas specials; try to pre-purchase your goods and gifts now as they tend to put prices up over the festive season. Shops conduct the majority of their annual sales in the month of December, so if you were in their shoes, wouldn’t you charge more for the items on demand?
Do your homework and comparative shop if you are looking at purchasing any big-ticket items.
Price compare
If you’re being good and running a budget booklet, compare normal prices from your Price Comparison Lists to make sure you are paying the best price for your Christmas groceries and gifts.
Don’t waste money driving from shop to shop, pick one shopping centre that has the most items on special and do your shopping there.
Save some of your Christmas bonus
Lastly, give yourself a Christmas gift this year: Save a little of your Christmas bonus to make 2015 an easier year.
Either pay off a debt, or pay a lump sum into a debt. Perhaps you could pay the kids school fees in advance, ask for a discount for paying a year in advance. Or pop a lump sum into your savings. But remember – do it first, before Christmas comes and you get tempted to spend it. Be kind to your future self by not spending all of your Christmas money on Christmas festivities.
“Be Smart, Shop Smart!”
Remember that items are likely to be cheaper in now – if you plan ahead, your money lasts longer.
Author: Leche Pitso – Marketing Manager © S.C.I. Training run financial wellness programmes that are BOTA accredited in Botswana. For help and information contact them on 72309719 or training@scifinancial.com.* Names in this article have been changed