Money-mindful festive season tips to help you

Year-end is usually a good time to reflect on achievements, short-falls and importantly finances.

How you end the year in some way sets the tone for how you want to start the new one.

This often requires critical thinking about various aspects of our lives, including our finances.

When one makes decisions about spending during the festive season, it should always be informed by several questions we’ve asked ourselves, occasions like schools reopening, and financial commitments like bonds and car instalments, among others that we still need to honour in January.

Remember, for many of the working class, there is a huge gap between December payday and when we’ll collect the next paycheck in January.

If your salary is usually paid on the 25th but due to the holidays, your company will pay your December salary on the 14th, there are more than 40 days until January 25.

That is a long time.

January is generally a long month, mainly because we’re all starting the year and are taking things slow.

Before I changed my splurging habits, I would be one of those who have Janu-worry blues.

Some people still joke about Janu-worry but it is a painful reality and psychologists have explored the relationship between money and our mental health. It goes both ways.

Denise Neethling, marketing manager at earned-wage access provider, Paymenow, says financial stress can “impact your sleep, work, relationships and can contribute to a vicious cycle in which stress causes adverse behaviours which themselves increase stress levels”.

Isaacs advises people to speak to professionals in the financial sector who can provide support and insights.

“Talking to a professional can help you find a way out of a challenging situation and towards healthy mental and financial habits. Together, you can work towards achieving your goals. Our money and minds are inextricably linked. One impacts the other and we need to equip ourselves with the best advice to fuel our different journeys to success.”

Financial services provider, Momentum head of key accounts Wanita Isaacs, says when we are stressed or anxious, we are more likely to make impulsive purchases or take on debt.

“Stress and anxiety can lead us to seek immediate gratification rather than considering the long-term implications of our decisions. On the other hand, people with strong mental health are better at managing their finances and making sound investment decisions.

You can make better financial decisions. It is your race – stay in your lane and go at your pace but make sure you finish in a better financial position than you were when you started.

I’ve become so intentional about making good financial decisions and not pressuring myself unnecessary.

I know when and where to buy. A few weeks ago, I shared how price tracking had changed how I do my shopping. I’ve identified which months have the best sales and I plan my shopping around those months.

Once you start doing this, you will realise just how your shopping habits change and how much money you can save.

I encourage you to draw up a budget but importantly, to stick to it. Don’t spend unnecessarily as this can have serious financial implications and possibly land you in debt.

CreditSmart Financial Services managing director Wikus Olivier says as the festive season is upon us “you might feel the pressure to splurge on jolly goodies and once-in-a-lifetime deals”.

“However, it’s time to embrace a money-mindful approach by saying no to festive FOMO [fear of missing out] and yes to invaluable experiences so that you pave the way for a worry-free January.

Here are five Christmas money saving tips to help ensure yourself a “Janu-NO-Worry”:

Christmas budget: Know your current money position and what your allocated spending amount for the December/Christmas period is. This includes the money that you can spend on gifts, celebrations, and things like travel expenses, for example. Keep track of your spending and make use of an “envelope” or cash-only system to avoid racking up a big credit card balance. Don’t forget to also make use of some of the savings you have gathered via your reward programmes as this can lower your overall spending amount.

Gifts and spoils: Reduce your number of Christmas gift buys this year and think thoughtfully what you want to get or create. Homemade gifts are thrifty and special. You can also encourage the family to take on a “Secret Santa” initiative – pulling a name out of a hat and spoiling one person within the spending limit. Or, what about sticking to a new “gifts for kids only” rule instead? Don’t stress or stretch your pocket to impress, it will only give you the Janu-beyond-worries.

Affordable meal/food considerations: Sharing is caring when it comes to special Christmas events and meals. Why not plan properly (snack or “meal type”) and consider hosting a potluck? Ask friends and family members to bring their favourite dish, side or dessert to the celebration occasion.

DIY decorations and table settings: No store-bought product can exceed the creativity or uniqueness of your do-it-yourself Christmas décor and table decorations. Think of a Christmas-related theme (or let the kids choose) and bring countless frugal and fun options to the table.

The real reason for the season focus: Stick to your needs and not material wants this Christmas period. And if you want to spend something, spend time with your loved ones. Joy is found in experiences. No happy-go-lucky shopping outing and super expensive activities can replace the precious sit-down with friends or family and creating memories that will last you a lifetime.

After the festivities wind down, you don’t want to be left with an empty wallet and regrets. Stick to your Christmas budget, unique gift or decorations approach and focus on what truly matters. It’s all about keeping it real – spending quality time with those dearest to you. A money-mindful method to celebrate December will allow you to start your 2024 year on a high note.

mashabas@sowetan.co.za