Christmas and New Year’s are almost here! If you have plans for the festive season, whether it’s preparing your home for guests or taking a vacation, it’s always a good idea to make sure you are financially ready.
Here are some ways to make sure you’re not out of pocket during the holidays.
1. Take stock
Analyse your current financial position by looking at how much cash and savings you have, as well as investments. Once you have all the information, put it in a spreadsheet for easy reference and tracking.
2. Repay borrowings
This helps you to determine how much you have left over after paying your monthly obligations, and ultimately determines how much you can spend worry-free. You certainly don’t want to be getting calls from the bank about an outstanding payment during your holidays.
If you are having cash-flow problems, credit cards are an option, but you should not rely on them as your main source of funds and risk overspending.
3. Prepare your shopping list
Shopping tends to be on everyone’s minds no matter the season. New clothes, gifts for loved ones, and spending on holiday-centric decorations or furnishing are all part and parcel of getting into the festive spirit.
Think about what you want to include in your shopping list and look into bulk-buying to get better deals.
4. Get ready to eat out
You might want to eat out since you’ve spent the majority of your mealtimes at home during lockdown, and are keen to take advantage of yummy seasonal offerings by the many eateries out there.
But eating out isn’t always cheap, and you will also need to take into account petrol and parking. These expenses can add up significantly.
It is always better to determine beforehand where you would like to eat, check out the prices and, most importantly, enjoy in moderation.
5. Consider travel expenses
With flight routes opening up, you might want to travel with loved ones to create new memories (Omicron notwithstanding).
Pay close attention to flight tickets and how prices are affected by travel restrictions. Reuse your old – and likely still neglected – luggage bags.
Look for accommodation companies that are actually offering cheaper prices to attract more people to travel.
Keep in mind that you might also have to spend on Covid-19 test kits, face masks, gloves and protective shields.
6. Plan for post-holiday spending
Take a bigger picture of your finances. Pay close attention to expenses such as food, loan repayments and rent after the holidays, as you would need to be able to pay for them before your next paycheck.
This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.