December, the month famed with festivities is here, where everyone is planning to spend with family and friends to close the year and start a new one.
However, the start of December marks the countdown to January, one of the months perceived to be the hardest to survive, as most people have spent most of their fortunes in December.
Most people are salaried, and receive their dues by December 20 before breaking for festivities. By the time the festivities are over early January, they have nothing in their pockets. They resort to borrowing, and that’s how they become borrowers debtors for the rest of the year. Their salaries are used to offset debts, and immediately thereafter they borrow and it becomes a cycle.
Here are a few tips to avoid such a scenario:-
Create a budget early
Create a budget depending on how much you can afford to spend before the holiday season begins. If you estimate how much your holiday expenses might add up to be ahead of time and start putting aside a bit of money towards your budget accordingly, you can avoid overspending and unburden yourself of the stress that comes with it. In this, do not forget to save for January.
Buy gifts early
Some people buy gifts on the Christmas eve, but this is not advisable. In most cases, it results to impulse buying and consequently overspending. Have a list of people you would like to buy gifts, and buy them early in advance.
Book holiday destinations and make travel arrangements early
Every year during festivities, holiday destinations tend to hike booking fees due to high demand. This is the natural law of any business. The same happens with transport systems where fares are hiked and few travel slots are available. To avoid the last minute rush, book your destinations early and make travel arrangements in time. This way, you will not find yourself paying extra for failing to plan your holiday early.
Keep Track of All Your Spending
Having a budget is not enough, but you ought to keep track of your typical spending to help prevent overspending in other areas.In case you find that you have exceeded your limit in one sector, try balancing with another.
Avoid peer spending
Some people save for the holiday season, and that might not be the same case with you. Spend according to your means, without comparing yourself with your peers.