While Christmas is one of the most highly anticipated holidays of the year, it can also be a financially stressful time for families as it comes with a lot of expenses.
Sometimes, these expenses put many people in a tight spot after Christmas holiday. In January, people have a lot of bills to foot that includes school fees, food, rent among others.
So, how can you ensure that you spend good Christmas and New Year moments and not get broke in January?
Here are a few tips;
Stick to buying essential stuff
During the December holidays, we tend to attend events and ceremonies that are likely to drain our pockets. We may want to buy gifts for our loved ones and sometimes we want to impress them with very expensive ones.
These are expenditures that will most likely put you in trouble in January. Instead of buying gifts this Christmas, consider gifting your time. Spend time with those you care about. Let them know you love them not necessarily by buying them gifts.
It is best to also be honest with your friends and family members. If you cannot afford a gift, just let them know.
Some, especially large families, have this conversation collectively and decide to rotate who buys each family member a present.
Set a budget
Budgeting your money is always good; not only during the festive season but also during your everyday life.
Think through all the different aspects of holiday shopping: gifts, travel, food, decorations etc. Draw a budget for all these and make sure your pockets are not drained.
If you notice that you are about to overspend, cut on unnecessary expenditures. For instance, you can forego gifts and spend more on food. In any case, we like eating so much during the festive season, right?
Avoid unnecessary expenditure
The holiday season throws us out of our usual family expenditure by adding extra responsibilities and activities. As a result, the price we are willing to pay for convenience begins to rise.
People like to buy expensive drinks, pretzels, smoothies etc, expenses that appear minor, but over a certain period of time, begin to drain your pocket. Avoid them.
So rather than rushing out into the cold every night over the festive season, why not hold at least some of the celebrations at your own place?
This way, you will not be spending on transport and accommodation. You may also not meet many friends that will make you spend more.
Just have quality time in your house and relax. After all, holidays provide the best relaxing moments before you go back to work in the new year.
This way, you will be able to at least spare a few coins to spend in January.
Track your expenditures
Avoid spending anyhow. You need to track where your money is going and whether you really need to spend on things you are buying or paying for.
Because of the extra shopping during the season, the importance of tracking your spending during the month of December cannot be overstated.
And you do not need fancy software or materials to accomplish this step. It can be completed with a simple piece of paper and pen.
Avoid buying on credit
If there is anything you will regret having in the new year, it must be debts! Debts come with a lot of stress and a new year needs to be embraced and celebrated. But you cannot do this if you crossed to the new year with a lot of debts. Avoid taking things on credit during festive season. Period!
Additional information sourced from the internet.