How to curb overspending this festive season

The festive season is approaching fast upon us, whilst this means getting some well needed rest, spending time with family and friends and going on holidays, we can find ourselves overspending on food, gifts and entertainment.

Unfortunately, however, when the calendar turns to January, the negative effects of overspending begin to set in; having to sustain your lifestyle via overdraft or credit card because all the money was spend on ‘baecations’, popping expensive bottles, purchasing designer labels etc.

Although there is nothing wrong with wanting any of the above; have a plan for your finances going into the festive season so you don’t have any regrets come January.

Here are a few tips:

• Have a Budget

Even before the holiday season begins, consider how much you want to spent over the holidays and stick to it. It’s easy to get lost in the festivities and just go with the flow. Having a budget will help you remember to track your spending.

• Use cash instead of your cheque or credit card

This is purely out of psychological reasons. Buying with your card is so easy! Just swipe the plastic and you can bring home just about anything you want. Whereas there is still something about purchasing with your hard earned cash; imagine you are at a store in Sandton and about to buy R 2,000 shoes, with hard cash. It’s much more painful than just swiping a card.

• Cut down on ‘convenient’ costs

The holidays always seem to throw us off the normal routine we are used to, for example, preparing and eating dinner at home. We end up ordering take outs a lot more than usual, all this adds up. Set a budget on family lunches and dinners.

• Limit expectations early

If you are that mom or sister who always gives the best gifts but are feeling the economic pinch, it is best to speak to your kids or family about what not to expect. This gives your family, especially kids, a sense of good money management.

Avoiding overspending during the holiday season may not be easy. It certainly requires extra time and effort. But trust me, as you start those new years’ resolutions to financial independence, your January-You will thank you for it!