The festive season is the best time of the year for everyone – not only is it the time to take a break from the pressures of the year, but it is also a time to spend time and create memories with your loved ones. 

However, we should be reminded that December is literally one week, while January can feel like longer than five weeks, hence the need to spend wisely and not fall prey to the Januworry syndrome. Do not let one week of happiness ruin the beginning of the new year for you. 

Festive seasons often involve travelling to visit family and friends, and buying clothes, food and many things for the festivities – all these can easily contribute to overspending.

Below are some tips on how to avoid the holiday spending trap:

Spend wisely and stick to your budget – track your expenses closely, according to what you budgeted for, and ensure that your budget has a buffer for unforeseen circumstances during your holiday. As we know, life happens sometimes. Additionally, understand that January might also have additional financial demands. 

Buying strategically and coupon collection – ensure to look for items on sale and buy what is most necessary. Remember the principle of need vs want; some things you can do without. Coupon collection does save you later when doing that big Christmas shopping.

Boost up your emergency fund – set aside some funds from your December budget to cover the January expenses. December salary is actually for the expenditures of January; thus, that money has to cover both the holiday festivities and the January expenditures until the month ends. 

Knowing what January is like for most after the happiness dust has settled, it is important to ensure that you have enough money for all your January expenses, the schools will re-open, you will have to travel back home, and all this and more will require money – enough to sustain you to the end of January. This financial cushion will safeguard you against unforeseen expenses, ensuring stability. 

Gifting – this is the season of giving, but rather explore cost-effective alternatives for gifts, such as custom-made, homemade presents or thoughtful experiences that do not necessarily involve high costs.

Have limits – if your budget will not allow it, it is also okay not to travel at all. Do something around where you are – within your means.

Communicate – when you are facing budget constraints, you can communicate openly with friends and family about your financial situation. Honesty will go a long way, and they may even be able to assist or adjust their expectations of you. 

The festive season must be a time of celebration, happiness and togetherness – not financial stress that will linger into the next year.

Avoid the habit of “spend[ing] money that we do not have on things we do not need to impress people who do not care”, Will Smith. 

Happy holidays everyone; be blessed!

*Mekupi Kambatuku is the managing consultant at Simpli Business Advisory. She can be reached at admin@simpliadvisory.com.