Festive period is here! Whether you are jingling bells all the way, stuffing a sock, getting a tree or decking the halls…It is starting to look a lot like Christmas. Finally, it is that time of the year when Santa comes bearing gifts. The kids are excited. The big family is coming together. Friends will reunite. Workers pull a curtain on the working year and everyone is happy.

It is no news that a lot happens during Christmas and the end of the year. There are so many events; family parties, concerts, charity and general acts of giving. The point is one way or the other, you will do a lot of spending. The real talk here is not about the spending, at least you have been working towards it the whole year, but the most important thing is  how to keep your finances in check for the New Year.

Festive period

Like we know, January is annoyingly long. Maybe because it is 31days and it is the first month of the year after a period of festivities and relaxation. It feels like a whole year in just a month. Without fully preparing, the slower the days get the more anxious you are about not having enough money to get things done. Read more

Preparing for Christmas and New Year is very important. Here’s a few tips we put together to help you keep your finances in check and get you ready.

Festive Period: 3 Ways to keep your finances in check for New Year

  1. Draft a plan: This is the most important thing. It is a careful and deliberate planning process. You have to know what exactly you want to do for Christmas and New Year. The things you are likely to spend on. The activities you have outlined for yourself and your family or your friends. The places you would like to visit, maybe. The gifts you would like to send to family, friends and colleagues. Christmas decorations for your home. A lot of people like to go with the flow without having a plan, whatever comes up. It is not might not end badly for some people but most times it is a bad idea. You end up spending more than you ever imagined or bargained for.

2. Have a budget: After planning, another important thing is having a budget. Putting a price limitation on those activities and things you have outlined. In other words, you must know the total amount you are willing to spend during the festive period. You do not just want to spend on anything and everything. It is the festive period, there will definitely be temptations of impulse buying and spending. But if you have a strict budget and you are clear on your plans for the festive period, you will not fall victim of impulse buying and spending. Also, settle your debts. Include payments of outstanding debts in your budget.

3. Eliminate debts: Avoid running into debts in the festive period. One of the good things about having a budget already is to curb your spending so as to not run into debts. Make sure you pay off your pending debts as included in your budget. You do not want to carry debts over into the New Year.

4. Invest: It is important to invest every time not just festive periods. If you have extra money, make sure you invest it. When you invest, you have returns on your investment and you can make better use of the money. If you have money laying around at your disposal during festive period, you might want to use it impulsively. If you invest it, you will be able to keep your finances in check. Read more on effective personal finance.

It might not be easy because we all have tendencies to splurge because it is festive season and we are hyper. Preparing well enough for festive season will get you ready for the New Year.