Even the most dedicated Christmas planner is likely to feel overwhelmed by financial and social pressures this season, especially following the limited festivities in 2020.
However, there are several steps you can take to help you spend your money wisely in the yuletide no matter how much pressure comes your way.
Here are our best suggestions, ranging from smart buying tips and money-saving ideas to why you should prioritise the important stuff this year.
One of the best uses of having money is to multiply it and generate profit with it. You could invest 20% of your savings in money market instruments. These are short-term investment options that you can convert into cash quickly.
You can also invest your Christmas bonus if you receive one. Even if it isn’t large, there are various ways to invest it. The traditional options are commonly known in Nigeria and some parts of Africa as Ajo, Esusu or Adashe – it is the oldest informal means of collecting and saving money through a savings club.
Make a Budget
Plan your finances for the end of the year, and avoid your money ending up somewhere you don’t want it. Establish a list of your essential expenses, such as purchasing gifts for your parents, siblings, close friends, and colleagues.
It is one thing to make a budget, but it’s another thing entirely to keep to it. Everything is geared towards making you spend in the Christmas season like this, and it is easy to do so carelessly. It would be best if you were alert regarding your finances. You will be grateful if you can keep yourself from going over budget.
Many stores take advantage of prices in a shopping season. They raise their prices and offer “specials”. Don’t buy the first thing you see, instead compare prices and pick the one that best meets your needs.
It is recommended that you shop online to have a variety of choices and compare prices before paying to have the items shipped to the recipient.
Keep track of your spending
It is critical to practice due diligence if you want to succeed. You should constantly keep track of your everyday expenditures over the Christmas season to keep yourself accountable. You can make a list either on your phone or jotter and pen, write down everything you spend money on each day, and then compare it to the budget you made to make sure you are on track.
Try to pay the debt you owe before getting into more debt. Try and pay it off completely, if you can. If you have multiple debts, make advance payments or consolidate them. It will be well worth it to make short-term sacrifices for long-term relief. It will give you peace of mind as you begin the new year.
Separate your needs from wants
Don’t just pick up anything off the shelf. Before shopping, make a list and prioritise it based on the actual needs you want, rather than what you think you need.
READ MORE: Avoid these 3 Money Mistakes this Christmas