6 Smart money moves this festive season

While the festive season is a brilliant time to relax and socialise, it’s also a time when it’s easy to overspend. So how about switching it up this year so you don’t end up with a sad bank balance and a mountain of debt as 2023 rolls in?

#1 FROM TRASH TO CASH

If ever there was a time when extra cash will come in handy, it’s now. Get stuck in and tackle those cupboards that are jam packed with items you haven’t touched for ages. Do it one room at a time and be ruthless – a good test is asking yourself, if you had to emigrate, would you pack and pay for these items to be transported? You’ll be surprised at what you would keep! You can sell online on Gumtree or Marketplace and for clothing, try Yaga. Turn your trash into someone else’s treasure, and give your bank balance a happy boost.

#2 MANAGE THE MONEY GOBBLERS

To prevent getting caught up in the spirit of wild spending, draw up a budget and decide how much you can squeeze from your December cash flow to fund everything. Using credit is not the smartest idea as you will be paying this off for months to come. Ideally, you would have started a ‘festive fund’ in January this year so you have some extra cash now. If not, start one in January 2023. It’s easy – just pay a fixed monthly amount into a separate bank account to use at year end. Spend any accumulated loyalty points over the festive season, and start saving them up in January for use at the end of next year. But, bottom line, draw up a budget (and stick to it!) before you spend the first cent.

#3 FROM ME TO ME

If you’re one of the lucky ones being paid a bonus, you’ll probably start planning weeks in advance how you’re going to spend it! But does that include giving yourself a gift? By stashing away a portion of your bonus every year, you can build up a healthy little nest egg over time. So decide upfront how much you’re going to gift yourself. It may be 10%, 25% or even 50% of your bonus, then use the rest to spoil yourself and your family. Invest your gift in a tax- free savings plan, or high-performing unit trust or ETF, and watch it grow.

#4 GIVE FROM THE HEART

Before you start shelling out cash, plan your gift shopping. List who you will buy for and set a budget per gift. Don’t add to this list or waste money on stocking fillers. Shop online if you can, as it’s easier to compare prices
and keep track of how much you are spending. Charity shops are great for bargains or you could give homemade gifts such as biscuits or decorated wooden hangers, beautifully packaged. A ‘pamper hamper’ is personalised and affordable. Include items you know will be appreciated, such as chocolates, nuts, a lovely room spray or a bottle of wine. For the person who has everything, gifting an experience such as a massage or picnic outing is thoughtful, and family members can club together if it’s a bit pricey. So give from the heart and don’t blow your budget.

#5 WASTE NOT, WANT NOT
So much food is thrown away every festive season, and every bit we turf out is money down the drain. Get creative and start some new traditions. If you’re entertaining, have a potluck dinner where every person brings a dish. If you’re cooking the festive dinner, look for cost-effective cuts of meat, find new recipes and plan your menu well  in advance. Use what’s in your pantry first and buy fresh ingredients, which are cheaper. Use an app like Paprika
to plan your menus, organise your recipes and create shopping lists. While traditional festive menus have starters, three different types of meat and two or three desserts, it’s way too much food. Less is more so rather cook your family’s favourite dishes and don’t forget that the joy of being together will create lasting memories.

#6 AVOID THE NICK OF TIME
There’s nothing more stressful (and expensive) than last-minute shopping. Navigating the crowds and chaos will leave you grabbing what you can just to get out of there. Retailers are skilled at encouraging impulse buying, so those special festive items will be very tempting. Plan what you need to buy, whether gifts or food, well in advance, and do it at your leisure. The only items you will need to buy close to Christmas should be fresh vegetables.