| Here’s a scary thought, Christmas is less than two months away! Last minute shopping usually ends in disaster, but a bit of early financial planning can help.
Every year retailers bring out the Christmas decorations earlier and earlier until we end up with Father Christmas jostling for space with Halloween pumpkins. This also provides an opportunity to start buying Christmas goodies ahead of time, allowing us to spread the cost over a few months. You can also stock up on non-perishables like the ubiquitous Quality Streets and Christmas cakes, as well as any holiday decor.
The key, however, is to have a plan in place, otherwise you’ll just spread the overspend.
1. Set a budget: Decide how much you’re going to spend this year and how much is going towards gifts. The good news is that everyone is feeling the pinch so no-one should be expecting expensive presents. When it comes to inspiration, remember that most people are facing a tight budget so buying practical gifts like clothes will always be appreciated. Think about smaller luxuries that people have stopped buying for themselves during these tough times.
2. Create a family pact: Closer to the time, people tend to get swept up in the festive season fever and lose perspective, so a month or two before Christmas is the best time to sit down with the family and discuss limits on gifts. For example, this year do a Secret Santa where the names of each family member are pulled out of a hat. You buy one gift of a certain value for whoever’s name you pulled out. Alternatively, set a price limit on gifts or agree to homemade gifts. Some families agree to give gifts to children only.
3. Leave the bank cards at home: Always shop with a list and stick to it so you don’t end up overspending. Leave the cards at home or the temptation to swipe on non-essentials may be too great. Decide how much you’ll spend on gifts, draw the cash and stick to your budget.
4. Eat at home: Always eat before you shop! Research shows that we’re better at controlling our spending when we have a full belly. Also, if you’ve eaten before you head out to the malls, you’re less likely to waste money at the food court.
5. Shop from home: Online shopping is a great way to avoid the Christmas rush and you’re also more likely to stick to the gift list. Online shopping allows you to compare prices and most places deliver to your home. Try websites like www.takealot.com or wwww.spree.com for gifts and Pick n Pay or Woolworths for groceries.
6. Get your loyalty working for you: End-of-year shopping is also a great way to use those loyalty rewards and save money.
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