It’s that time of the year again when it all gets a bit crazy! It’s the school shows and prize givings, office parties as well as the start of Christmas planning. The shops have been fully stocked with Christmas decorations since September, and we might have even started buying Christmas presents and decorations.
We can get so wrapped up in the spirit of Christmas that we can lose sight of our budget and spend too much. There are so many amazing specials happening, that we might be lured into thinking that we need to buy the latest gadget as we won’t get that price again or it might get sold out. We might even take out some of our savings to buy the “much needed” gadget, clothing or toy.
It’s important to keep our wits about us and maintain perspective. Christmas comes around every year and the “once in a lifetime deals” will happen again. Gadgets, clothing and other goods are consumables, meaning, they depreciate in value – once purchased, they lose value. Once you have bought the latest DSTV decoder, iPad, iPhone or fashion clothing, they start to lose value. So think carefully before spending your hard earned money. If you have saved for something or planned to buy it then this is a great time to shop because of the specials. But if not, rather don’t buy it on credit. The lure of the amazing “once in a lifetime” special can cloud our vision that we end up using the credit card or other store cards, to buy it. The interest that is charged when buying goods on credit card is not worth it in the long run. The interest will nullify any discount you might have received when you purchased the item on credit. Buy now and pay later does not make financial sense.
It’s also a great time to reflect on what you would have liked to have bought but weren’t able to afford because you didn’t save enough. It’s a great time to start thinking about next year’s budget and what you want to adjust in your 2015 budget. Start planning and thinking about the expenses for next year and how you want change your saving and spending habits.
We can also get a bit silly by eating out and entertaining more than usual during this season. It’s something about the Christmas season make us want to go all out, entertaining lavishly, spending more than we planned, buying the best food and generally wanting to spoil those around us. Being generous is great but is better to do so within our means and not to incur debt whilst doing so. Consider spending less on your family and friends and give to the poor amongst us, those who have less than us. There is nothing better than to spoil those who have nothing, be it anonymously or by visiting a home and giving of your time and resources. Make this Christmas about others and sticking to the budget.
In past I have set a budget on how much we want to spend on gifts. Sometimes it is easier said than done! We want to buy the latest and greatest for our loved ones. We want to see the look of delight on our child’s face when they open the perfect gift or we want our spouse’s to be thinking, “You know me so well!” Rather stick to the budget and don’t buy on credit that will spend the better part of next year paying off. Rather use money you have saved for Christmas. If you haven’t saved for Christmas – best you allocate it in the budget to save for next year!
powered by