With life’s many seasons and all the unexpected curve-balls that live throws at us, it can be difficult to plan for each year. There is a saying “Life is what happens to us while we are making other plans” . Things like Christmas, birthdays, or a change in job can put pressure on your financial plans; so how do you account for changes like that?
We have some tips so you can prepare for this time and not compromise your finances:-
1. Don’t be drawn in by the hype
The temptation to “shop until you drop” and overindulge in eating and drinking around birthdays and Christmas can be tricky. What the advertisements don’t tell you is that if you choose to overdo it, you may be in for a massive financial shock in the New Year and what should have been a great start to a new year, new beginnings and planning your goals, turns into a damage repair exercise for your wallet and your body. Ask yourself, is it worth it?
2. Set a budget and stick to it
Work out a budget for your Christmas spending in November, not just for food and drinking, but presents and any socialising you plan to do. Be realistic of course and don’t be pressured into spending more than you can actually afford to. For those who are super organised, or don’t have much disposable income set up a fund 8 – 12 months before Christmas, and set a little aside each month. Check out our blog on skimming for the spending period to get some ideas.
3. Look for deals
There are always great deals and discounts on offer around Christmas, and they are not hard to find. There is also fierce competition between the supermarkets and retailers, so there is always bargains aplenty. Don’t be tempted to buy full price for something, shop around, it will be worth your while.
These are just three tips to help you through the holiday season, there are so much more, but here at TWiCE, we want to encourage you not to get into debt to fund the holiday season. Credit cards and unauthorised overdrafts are likely to attract high charges and will all need to be paid back. Stick to cash as much as you can and start the New Year feeling lighter and wiser.
If you’d like to learn more about effective budgeting and planning for what life has in store, sign up for our Fortnightly Insights and Money Stories here. This is free for Croydon citizens
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.