If you know you’ve been tempted in the past to overspend throughout the holiday period, it’s a good idea to set yourself up for financial success and put some rules in place. If you’re unsure of where to start, we’ve provided some tips so you’ll be ringing in the New Year debt free.
Set a budget
In order to stick to your money goals and make this holiday season your best one yet, it’s wise to set a budget to keep you on track. Make a list of anything that’s essential for you or your family, whether that’s a pavlova, Christmas decorations or a real tree. This will allow you to know what’s truly important and can help you make the tough decision of choosing what’s necessary.
Set a cut-off date for purchases
Avoid last-minute purchases by implementing a cut-off date for your spending just before Christmas. Not only will you save money but you’ll also bypass the hordes of customers, as you won't have to venture out to the shops the days leading up to Christmas.
Keep lunch simple
Consider a simpler version of Christmas lunch (such as a buffet where everyone brings a plate or delegate as many tasks as you can). It’s a great way to cut costs on catering and allows everyone to participate and share the costs.
Not all presents need to cost you money
Remember, you don’t have to spend money to give someone a present – you can give your time and expertise as well. If you are strapped for cash, you could offer to help someone out with a task that needs doing around the house or in the garden. Tutor someone for an hour, proofread an important letter or job application, walk their dog – whatever suits your skill set and the time you have available. Handmade gifts are also a thoughtful alternative that shows you care.
Plan ahead for the New Year
It’s also a good idea to plan ahead for the New Year so you’re not blindsided by any challenges that may arise. Make sure you account for any unexpected costs and ensure you have an emergency fund. Find out what your financial triggers are that cause you to overspend, it could be wanting to splurge on expensive gifts for loved ones or feeling the need to splash out on fancy decorations. When you’ve found out the reason why, slow down and think to yourself, ‘is this what I really want or need?’
Stick to paying with cash when you're out
Another great tip is paying cash when you’re out, this ensures that you don’t overspend and teaches you to stick to a certain amount of money without going over. If you’re shopping online, practice abandoning your online cart and waiting 24 hours to see if you really need those items.
If you have any questions or need extra support, we're here to help you anytime, in any language. Simply start a chat with us via the home screen of the Sonder app.
Information sourced from: Money Brilliant.
Image credit: Carol
All content is created and published for informational purposes only. It is not intended to be a substitute for professional advice.