The festive season is here, and people might feel the pressure to splurge on expensive goodies and once-in-a-lifetime deals, according to Wikus Olivier, managing director at CreditSmart Financial Services.
Olivier said that it is time people embrace a money-mindful approach by saying no to festive overspending and yes to invaluable experiences so that they can enjoy a worry-free January.
Here are five frugal Christmas tips to help ensure yourself a Janu-NO-Worry:
Christmas budget
Having a budget will give you an idea of your current financial position and help you allocate an amount that you can spend during the festive period. Make sure that the money that you allocate includes money that you can spend on gifts, celebrations, travel expenses, etc.
“Keep track of your spending and make use of an ‘envelope’ or cash-only system to avoid racking up a big credit card balance. Don’t forget to also make use of some of the savings you have gathered via your reward programmes, as this can lower your overall spending amount,” Olivier said.
Gifts and spoils
You can save money by reducing the number of Christmas gifts that you buy and instead getting creative by making a homemade gift.
You can also encourage your family to take on a ‘Secret Santa’ initiative so you can spoil one person within a spending limit instead of splurging on multiple gifts, or you can create a gifts for kids only rule.
Affordable meals and food considerations
Sharing is caring when it comes to special Christmas events and meals. You can plan and host a potluck where your friends and family members bring their favourite dish, side, snack, or dessert to the celebration occasion.
Homemade decorations
No product that you buy in a store can match the creativity or uniqueness of Christmas and table decorations that you have created yourself, plus this option will allow you to save money. Think of a Christmas-related theme or let your kids choose, and then create decorations that go along with your theme.
The real of the Christmas season
During this festive season, it is important that you stick to your ‘needs’ and not 'material wants’ this Christmas period. If you want to spend something, spend time with your loved ones because joy is found in experiences.
Olivier said: “No happy-go-lucky shopping outing and super expensive activities can replace the precious sit-down with friends or family and creating memories that will last you a lifetime.”
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