Become a minimalist this December
In our most recent article we shared about different ways to protect your current and future income. In this weeks article we delve deeper on the subject matter and give practical tips on how to become a minimalist this festive season. When the calendar turns to January, the negative consequences of the unnecessary spending becomes apparent: higher-than-expected credit card payments, tighter finances than anticipated, increased stress, and regret over the amount of money spent.
Budgeting is one of the most important tools for navigating troubled financial waters, and there are several ways to navigate the holiday season and end the year on a financially sound footing, even if you have limited resources at your disposal.
Set a budget. Decide how much money you want to spend before the holiday shopping season begins. Consider all aspects of holiday shopping: gifts, travel, food, and decorations. Divide your budget into the following sections: How much money do you want to spend on gifts? How much will the trip cost? How many special events do you have planned, and how much will they cost? What changes and/or sacrifices do you need to make if the numbers don't line up?
Become a minimalist this December
If simply creating a budget was all that was required to keep us within our spending limits, we'd be set for life—not just the holidays. Regrettably, this is not always the case. Even when we have strict budgets, many of us overspend. One reason for this is that retail stores are incredibly good at convincing us to part with our money. Loyalty cards, retail credit incentives to return to the store, and constant sales are all tricks used by retailers to get us to part with our money. Keep an eye out for them, especially around the holidays.
Don't squander it. If you get a bonus, use it wisely. First, use it to repay any debts you may have; second, pay any past-due expenses. If you have any money left over, save at least half of it; the rest can be used to purchase necessary items that you could not afford during the year, such as appliances or clothing. Tracking your spending on a daily basis is an important part of good financial stewardship. This is true in general, but it is especially important during the holiday season. If you have carefully planned your budget (Tip #1), you must exercise caution in sticking to it.
Become a minimalist this December
You’ve probably heard the saying: ‘The best things in life are free.’ Many activities are either inexpensive or free. Get outside and enjoy the beautiful South African weather during the festive season and school holidays. Seek out activities by soliciting input and ideas from all members of the household. Quality time with loved ones doesn’t always need to be costly. Plan a picnic in your backyard, take walks in the neighbourhood, etc. If you must travel, bring your own snacks and meals and avoid expensive restaurants and take-out food.
It may be difficult to avoid overspending during the holiday season. It definitely takes more time and effort. But believe me, your January will thank you. Include everyone. All members of the household should be involved in the financial budgeting process and discussions about household expenditure. By doing so, you not only increase understanding of a household's financial situation, but you also educate your children from an early age, thereby fostering a culture of financial discipline.
Become a minimalist this December, Become a minimalist this December, Become a minimalist this December
