The best time to start saving for December is at the beginning of the year. However, you can start now. The festive season is around the corner. It’s the season of giving, which basically means it’s the season of spending. So, if you are not careful and smart with your finances, your bank balance is bound to take the strain.
With steep increases in living expenses due to the tough economic climate. Tackling your December budget now will put you in an advantageous position. what can you do to make sure that you keep within your budget in December?
How to budget for the festive season
Draw up your budget for December now
Make a list of all your expected holiday expenses. This list must include your monthly bills, so that you don’t forget to keep up with these payments in December. In addition, tally up expenses such as Christmas gifts, meals, entertainment, and travel expenses.
Track your spending
Track your expenses as you go, so you don’t end up overspending and ruining this month’s and next month’s budget.
Keep an eye out for sales and deals over the next few months
Planning for holiday spending well in advance gives you a chance to get good deals on gifts—and more time to think about what you want to give everyone. If you wait until the last minute, it’s more likely that you’ll end up spending way more than you intended.
Set a spending limit for gifts
Set limits on how much you want to spend on gifts, and try your best to stick to that. There are plenty of ways to give someone a gift they will love without blowing your budget.
If gift-giving is important to you, start saving early so you can budget for it.
Make a shopping list
This is key to saving money, time, and energy. When you’ve planned thoroughly for whom and what you’re shopping for, you’re less tempted to add unnecessary items to your trolley.
Read: Best grocery loyalty cards in South Africa
How to save for festive season
Don’t buy gifts shortly before the festive season
Don’t wait for Black Friday to start Christmas shopping—look for sales right now.
Prioritize your saving
Ideally, the goal should be to save as early as January for December expenses. The longer you save, the more money you will have to play with. However, you can kick-start your savings at any time of the year – rather have something saved than nothing at all. Savings should be a priority item on your list of expenses.
Make personalized gifts
Buying Christmas gifts can be expensive. Where possible, try and make personal gifts for your loved ones. You could bake cookies, put them in a jar and wrap a ribbon around them for a bit of festive cheer. Or offer them a personal back massage voucher – redeemable on Christmas Day.
It’s important to always try to save whenever you can, and having a savings goal such as saving for next December is a great starting point. It will also help to take the added financial stress off over the holidays to ensure you can focus on having a good rest with your loved ones.
Repurpose gifts
Repurposing old gifts is another way to regift things that are in your home but you’ve never used in the past and don’t see yourself using them in the near future. This is the perfect way to get rid of the unnecessary items in your house while gifting someone with something that has never been used. It’s killing two birds with one stone.
Pay cash
One way to avoid holiday debt is to pay cash for everything. Once your holiday budget is finalized, take that amount of money out of the bank and stick to your spending plan. Avoid using your credit card. When you go shopping leave your credit card at home.
How to make money this festive season
Sell your stuff
Get rid of some of your old stuff. Not only will you make room for new things, but you’ll also make some money to buy other people’s stuff.
Here are some platforms you can sell your stuff:
- Facebook market
- Gumtree
- Social media: Instagram and Twitter are also good places to sell your stuff on.
- Yaga
Start a side hustle
If you’re able, make extra cash to cover the extra costs of Christmas. We’re talking side hustles like driving for Uber or Lyft, delivering food, picking up holiday hours at a seasonal job, and dog sitting while people are traveling for the holidays.
Read: Why You Should Start a Side Hustle
Here are side hustle ideas for December:
- Become A Virtual Assistant
- Video Editing
- Photography
- Deliver food
- Driver for uber or bolt
Fill Out Online Surveys
Online surveys aren’t going to make you lots of money. But if you’re looking for something that is really easy, flexible, and won’t eat up much of your time, you may be able to earn a little pocket cash before Christmas rolls around.
Here are some survey sites to check out:
- Surveytime
- Lifepoints
Read: How to stick to your budget in January
Saving your December 13th check
Do this with your December 13th check:
Put some of it aside
Make January great again by planning your December spending effectively and growing your money to meet your January expenses.
Contribute to your emergency fund
Everyone should have an emergency fund or a retrenchment fund. The rule of thumb is to have funds equal to three times your monthly expenses that can be accessed in an emergency.
Read: How Much Should I Save For Retirement
Put it towards your debts
Assign some of your money to pay off your debts, especially those with high-interest rates. You would be surprised how much money you can save by just paying a little extra on your debt or even paying it up sooner.
Read: How to use Debt Snowball to pay off debt
Did you know DebtSafe can help you stay on top of your debts with their programs?
Home loan
Add your bonus to your home loan and reduce the total interest amount you repay.
Invest
One of the smartest ways to use your bonus money is to invest. You can invest by topping up your retirement saving or opening a tax-free investment account.
Invest in yourself. Investing your bonus in honing your skills could be a wise decision for your future. Investing in a work-related skill will increase your earning potential. You will be setting yourself up for a better career in the future.
Discover what free resources are available before investing your bonus in a skill set you’re interested in but don’t know much about.
Start That Side Hustle
Starting a side hustle is another way to stretch your bonus. Your full-time job’s Christmas bonus may provide you with the initial income you need to get started.
Pay for yearly expenses upfront
Many schools and insurers offer a significant discount if you make an upfront payment of the year’s fees or premiums. That’s a great way to reduce your annual expenses and free up much-needed cash in the year to come. However, be sure that you are disciplined and save the money that you would have spent each month so that you don’t end up losing out in the long term.
Have you heard of Episodic Health Insurance? Provides flexible & affordable Health Insurance.
Spoil yourself
You have worked hard all year long and it won’t harm you to reward yourself. Just make sure you put aside a specific amount and remember to stick to it.
If you follow all these ways to budget, save and make money, you might just find yourself to be in a good financial position to start the new year. Remember: January is the toughest month, financially. So make sure you are responsible with your December spending.
Take a look at our free personal finance courses. We offer eight free courses to help you create, manage, and grow your money.
