Whether its Christmas, Easter or birthdays, its so easy to overspend on those we love. It's been a pretty tough year with a lot of people out of work for extended periods of time. Here are a few tips that may help.
MAKE A LIST AND A BUDGET
Make your list of all the things you need to purchase this Christmas. I like to include everything from baking supplies to travel expenses to postage and shipping. Make a list of everything.
Once you know all the items you need to budget for it’s time to write the budget. You could make a separate budget for groceries and gift wrap etc, then another for presents. There are a lot of budget templates on the internet these days and they might be useful if you have not done this before.
GO CARDLESS
To remove all temptation to go rogue and buy something extravagant, leave the cards at home and use cash. It might sound extreme, but payWave is both a blessing and a curse. It’s far too easy to just ‘tap & forget’. By working out how much you will need each week for discretionary spending and withdrawing the cash, you will be much more aware of your outgoings. If you don’t like carrying cash, set up an account which you can transfer your weekly budget into, separate from bills, savings and day-to-day essential expenditure.
REVIEW YOUR FINANCES
If you find that your credit card bill is a little higher than usual, don’t stress. Make sure you’re making regular payments to help minimise any additional fees and interest you may be charged. This is also a good opportunity to review your credit card rates and fees, especially if you have a large credit card debt. Shopping around for a lower rate or finding a low-interest balance transfer credit card can make all the difference in the long run.
PLAN AHEAD
Don’t beat yourself up for overspending at Christmas, it’s the holidays after all! Take this as an opportunity to not only recover from Christmas spending, but also as a chance to get a grasp on your finances for 2021. Take the time to review your finances and determine what financial goals you want to achieve in the coming year.
