While, for many people, the normal thing is to go all out to ensure that the period is well celebrated even if it means having a financial downtime in the New Year, there is so much you can do to strike a balance.
The festive season is upon us and there’s literally a party or two every single day. Even for those who can avoid the big concerts, there are expenses at every corner.
While, for many people, the normal thing is to go all out to ensure that the period is well celebrated even if it means having a financial downtime in the New Year, there is so much you can do to strike a balance.
If you too will like to have fun this December without having to reset all your financial plans, the following tips will keep you in check:
Use A Budget
As tempting as it might be to spend freely, restricting yourself to a budget gives you a level of control over your finances – and this doesn’t mean you will have any less fun!
Draw up your budget to account for all expected expenses like food & drinks, concert tickets, travel expenses, gifts, clothing, etc. if you don’t stay within a range, you will most probably spend above your means.
Many people receive bonuses in this period; a wise thing to do is to spend your actual fund and freely spread it across your needs and wants, and set the bonus funds asides. You will be thankful for it in January.
Do Not Use Borrowed Funds
You might already say, “of course I wasn’t going to borrow to have fun” however, borrowing here doesn’t mean you walk into the bank and ask for a loan. It’s those short term loans from friends to meet short term obligations ahead of expected money.
It’s your credit card that seems like a non-ending source of money, and even your bank overdrafts that seem to always come in handy. There is no gain in discounting your future earnings just to satisfy current wants.
Leave Your Savings Out Of It
It’s great if you had saved up for a trip. However, having a last-minute impulsive jab at your financial stash will cause you more harm than good in the long run. Understand that celebrations are not a good excuse to take out of your savings – not unless you had specifically saved for them in the first place.
As much as possible, pretend your savings do not exist. You’d also be thankful for it when a real need arises next year.
Look For Deals – But Be Careful
Deals are great. With the year coming to an end, many businesses are trying to sell off their stock so they can take a break ahead of the coming year. Others, like travel companies, will offer services at discounts in order to get more people interested and make gains from economies of scale.
There are, of course, the ones who don’t really give discounts but say they do. While deals can help you cut down your expenses, the “illusion” of their existence can sometimes be your biggest undoing. Where you have not planned to purchase an item, DO NOT purchase it because it seems cheaper now.
Do not purchase things you don’t need because it seems more affordable no matter how tempting it is. You will end up with more holes in your pocket for sure.
Avoid Impulsive Purchases
Following closely from the above point, run away from impulsive purchases like a plague – not unless you have somehow been able to account for them in your budget. If it’s not part of the plan, you might want to leave it until it becomes a priority.
Track Your Expenses
Do not throw your receipts away! It is easy to get lost that you live solely from an expenditure point of view. Keep track of how much money is going out and how it affects your financial plan.
Another great tip is to make some last-minute investments so that you have a little bit of confidence for the coming year. When all of these are done, take out time to plan for the incoming year and you will be financially set to take on the year 2020 by storm. Written by
Lawretta Egba.
