Plan those festive season purchases
Christmas is a time full of excitement and cheer … we call it the season of giving but the flip side of this is that we often forget that behind all this “giving” lies a lot of excessive spending. The holiday spirit is sometimes so contagious that it can turn even the most frugal buyer into a shopaholic! There are people who plan and budget for the festive season well in advance but the plain truth is that such individuals are a bit of a rarity, with the bulk of us being swept up in Christmas shopping-meltdown frenzy, chasing bargains, trying to get the last of our gift-buying out of the way. By the 24th of December we are physically (and financially) exhausted, wondering what we spent our money on and how we are going to make it until that much awaited January salary arrives.
Irrespective of the level of income you are earning the tendency to overspend is there and is fuelled by the media, seemingly bargain buys and outside social pressures to spend. Everyone would like to enjoy the festive season and the holiday spirit but the bills at the end of it (worse still if you have bought on credit) is something that we would all like to avoid. So in the spirit of spreading not only the good tidings during this year’s festive season, let us also mention a few helpful ways to avoid being swept away by all the cheer straight into a mountain of holiday debt.
Start saving
The best and most helpful piece of advice that can be given with regard to Christmas spending is start saving as soon as possible. Although simply saving for the year end shopping may seem pointless when you could rather be investing in something long term, the simple reality is that often Christmas spending gets so out of control that if you don’t plan and save ahead of time you could find yourself paying off debt accumulated over December for the rest of the year to come.
Start your shopping for Christmas earlier
Another useful tip is to start shopping for Christmas as soon as possible. This allows you to not only shop around and compare prices, but also avoids that fever of last minute buying which often leads to unnecessary spending. Be conscious that retailers are aware of the fact that along with tidings of goodwill, the festive season also brings with it the tendency to splurge; hence they employ a number of strategies to fuel this. For example have you noticed that over the festive season shops open early and close late; how we are constantly bombarded with advertisements of sales and bargains; and as soon as we hit December they start a daily countdown? All of this is done to create a sense of excitement and urgency and is something that we have grown accustomed to during Christmas – to the point where many of us feed off this energy and sometimes use it as a further excuse to spend. By being aware of the atmosphere that is created, starting early and not getting caught in the rush and panic of last minute shopping, we can actually have a much more enjoyable shopping experience and our bank balances will thank us as well.
Use cash rather than credit cards
Another practical step that we should try is to use cash when purchasing. It is also important to note that studies have shown that when people use credit cards as opposed to cash they spend significantly more. Most people will agree that when we are buying those Christmas gifts, having to part physically with cash makes the reality of your purchase hit home much harder, as opposed to simply swiping the purchases and not actually physically experiencing that dip in your disposable income right now. However, we feel the pinch as soon as credit card bills arrive in the mail during the course of the year that follows. Sometimes one cannot avoid using credit cards altogether, so when you do decide to swipe, ensure that it is not on an impulse buy and that you have shopped around for the best deal. Most of all if you are increasing the amount owed on credit during Christmas ensure that when the time comes you can pay the instalments that are required.
Plan a Christmas budget
Most people have a monthly budget when it comes to the normal realities of life, but somehow when December hits we tend to forget this logic. However, if we can apply the same principle to Christmas it places us in a much better position financially and on a practical level as well. It enables you to keep yourself in check and prevents you from getting overwhelmed by the hype that could contribute to spending beyond your means. Having a pre-set budget and list also means that you are aware of your restrictions and enables you to stop spending. Once you have your Christmas budget in place, another useful tip to ensure you actually keep to your plan, is to keep track of what you have purchased. This can be done by writing it down in a book or even keeping track on your phone - basically having the list of purchases physically available and not trying to keep tally in your head.
Impulsive buyers stay away from festive season sales
If you are an impulsive buyer and if you do shop for the sheer pleasure of getting a good deal perhaps it would be best to stay away from sales over December. The thrill and excitement of getting a “bargain” or walking away from a huge sale, feeling like you have truly made a good purchase, soon wanes when you realise you didn’t actually need what you bought. Remember that in effect those little sale purchases do eventually add up to a big dent in your bank balance. Although your secret shopaholic heart may not take kindly to such advice, come mid-January when you are still financially comfortable, I don’t think you will miss those “35%-50% sale” items which you didn’t need anyway.
As the festive season begins, with Christmas virtually on our doorsteps, I am sure that being prudent with regard to spending will be the last thing on our minds. So before we get swept up in the merriment of the season, I urge everyone to take a step back and think about the way they will be spending their hard earned salaries and bonuses over the holidays. Remember Christmas does indeed come once a year and we should endeavour to enjoy it to the fullest, but not at the expense of having to pay for it (sometimes with interest) over the months that follow.
