Resist urge to splurge

This is the season to spend, but what happens when you don’t have the budget to spread festive cheer?

The holiday season can bring a lot of anxiety and lead to financial hardship if we find it difficult to resist the urge to fork out a lot of money. Unfortunately, many people end up dreading the Christmas season simply because it often means incredible amounts of debt and financial stress.

In a world where investors are bombarded with financial and economic stresses, there is really no need to add to the burden.

The biggest reason people implode financially during Christmas is a failure to plan and budget. Many times, it is difficult to remember exactly how your money was spent and, often, this money is wasted on frivolous purchases. Having and sticking to a Christmas budget will ensure peace of mind and allow investors to stay out of the red. There are some things you can do to ease the stress you may be feeling this time of year.

“Remember that life continues beyond the festive season with the usual expenses, and ideally, we should plan for it to continue comfortably rather than set the scene for the New Year with ‘Janu-worry’,” Financial Advisor Zipho Mhlongo, advised.

   “If you feel compelled to spend too much and have tried to curtail your shopping but find you cannot do it alone, it may be time to consider seeking professional help,” Mhlongo continued.

As exciting as the festive period may be, it can also be easy for parents to spend beyond their means through wanting to provide the best for their children. The impulsivity associated with the holiday period and parents wanting to reward children for their hard work during the school year can threaten the family’s ability to cope financially when the new year starts”.

 “If you teach your children to value sentimental gifts and gestures rather than material things, you are inculcating richer and more solid values that will serve them well in life. Children should be raised to realise that happiness and fulfilment do not necessarily come through acquiring possessions.”

A memorable festive does not have to cost a lot of money. “Find creative, personal ways to treat each other – a picnic of fruit or sandwiches where you can spend time together having fun and enjoying the beauty of nature can be more memorable than an expensive gift.”

Plan ahead

If you still want to get gifts for your friends and family, plan ahead and keep an eye out for specials. “Prices are often hiked in the festive season because businesses know people are in the mood to spend money. It is wise to plan months ahead and make necessary payments before prices are hiked so that you don’t need to absorb these costs at year-end when there are often other expenses,” said Mhlongo.  Mhlongo further mentioned that it is also sensible to tell children or other family members you will be spending the festive season with about your efforts to save and plan ahead so that they are involved and their expectations are also shared.

This makes it easier to navigate this period with minimal tension. Criminal activity, including cyber scams, often increases around this time of year, Mhlongo warned, reminding everyone to remain on high alert. “Whether con artists approach in real life or through text messages, phone calls, social media, emails or the internet, we must always be on our guard. “Tragically, elderly people are more likely to be victims of cybercrime due to limited knowledge of technology that leaves them more vulnerable to manipulation.”

Please help inform the older people in your life; your gogos and mkhulus, need to be taught not to click on any links or give out crucial details like pin codes and confidential information in phone calls.”