TIPS TO HELP YOU SAVE MONEY OVER THE HOLIDAYS

Here are few ways to spend wisely over the festive season, so that you start 2020 on a sound financial footing.

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The approach of the festive season often brings with it a sense of happiness and excitement. ‘Many people have an emotional connection to this season,’ says consumer education expert Eunice Sibiya. ‘When going into stores, we aren’t just confronted with choices – we see gifts, and happiness on loved ones’ faces.’

This is especially true for people who get a bonus in December. It’s very easy to fall into the trap of feeling wealthier than you are, and overspending during the holiday period only to regret it later.

SPEND YOUR BONUS WISELY
For most of us, annual bonus time feels like the pot of gold at the end of a long, hard year, and it’s tempting to go out and splurge on retail therapy. But before you go and blow it all, here’s what to consider. Think about the expenses you’ll need to cover in the New Year, and draw up a budget. Allocate money for needs first, then see what’s left over for the fun stuff. Think about everything from rent, electricity, phone bills and transport to school fees and uniforms, childcare and unexpected expenses.

USE YOUR BONUS TO PAY OFF DEBTS
In all the festive-season madness, it’s important to avoid taking on new debts that will put a strain on your finances later. You might be able to put a deposit on a new TV, but will you be able to meet the monthly repayments for the next two years? If you want to give yourself a really smart gift, make a New Year’s resolution to get out of debt. Use your bonus to pay off any one of your debts, even if it’s a small amount. Then, starting from January, take the money you were spending on that repayment, and add it to the repayments on your next debt. Once that one’s paid off, keep putting the money aside to clear more debts. Keep your eye on the prize and you could be debt-free sooner than you think.



TRACK YOUR SPENDING
Just because it’s Christmas doesn't mean the normal monthly budget should fly out the window. ‘Create a budget according to your after-tax income and stick to it,’ advises business coach Izak Strauss. This will include how much money you plan to spend on gifts, entertainment and other holiday expenses.

Strauss recommends tracking your spending using an app on your smartphone, if you have one. ‘Mint.com, 22Seven, and Pocket Expense all allow you to see your cashflow in real time,’ he says. ‘This works well if you use a debit or credit card for all your purchases, but it also works with cash if you enter every purchase.’

HAVE NO SPEND DAYS
‘The guilt and stress are often self-induced – you do have control,’ says Strauss. So try to have days in the holiday that are spending-free, he says, by staying at home or going to the park for a picnic. You’ll feel good about yourself, and your wallet!

GIFT SMART
Gifts are a great joy at this time of the year, but don’t break the bank buying unnecessary luxuries. Be sensible – your teenager might be upset if she doesn’t get that cellphone, but her schooling – and school fees – come first. You can also make your own gifts – get the kids involved in making inexpensive gifts for friends and family.



BE A SAVVY SHOPPER
A little bit of self-restraint can save you a lot of money at this time of year. If you get the urge to buy something on impulse, that isn’t on your shopping list, take a deep breath and sleep on it. More often than not, you’ll wake up to realise it wasn’t such a good idea after all.

Shopping online is also a great idea, saving you transport fees. You can also save money by finding promotions online and opting for free delivery. And it’s worth looking for vouchers on sites like Wikideals and Hyperli.