While the excitement of the holidays are upon us, in the back of our minds we are also aware that they are laden with extra expenses, from travelling to entertainment, and buying loads of treats for the family.
While the excitement of the holidays are upon us, in the back of our minds we are also aware that they are laden with extra expenses, from travelling to entertainment, and buying loads of treats for the family.
While there is nothing wrong with spoiling yourself (after all, you have worked really hard), at the same time it is important to plan how your holiday fits into your budget.
“Saving does not happen in a vacuum – it needs to be intentional and requires planning and creative thought,” says Metropolitan Economist Wilfred Moyo.
“It is interesting that the recent results of the MMI Unisa Consumer Financial Vulnerability Index – an indicator of consumers’ perceptions about their financial positions – revealed that respondents listed ‘bad planning’ as the primary cause of their financial vulnerability.”
Moyo outlines some cost-cutting tips to help ensure that you do some good planning these holidays to help you save and keep a healthy bank balance come the end of the month.
Set a holiday budget – and stick to it If your holiday is not a part of your budget, there is still time to do some planning. Break your holiday activities into bite sizes and decide on a specific budget for each item – and stick to it. Ask yourself the following questions:
• If you will be travelling, how much will you spend?
• If you are buying treats for your family, what is your spending limit?
• Will your children get extra pocket money over the holidays? If yes, how much?
• How much will you spend on eating out and entertainment?
Of course you need to ensure that you are not spending more than you actually have. Sticking to a holiday budget plan will help prevent you spending on credit or going into overdraft, which can be easy when you are in a holiday mood and have not planned how much you will spend.
Consider having a “staycation”
While many people opt to go away with their families, when planning your holiday perhaps you can consider having a “staycation”. Become a tourist in your own town or city. Explore options for cost-free activities that you can do with your family, such as hiking or finding a local park where you can braai or have a picnic. You will save on fuel costs, accommodation and all the little extras that go with travelling out of town.
Don’t allow yourself – or your children – to get bored
Bad planning – or no planning – can easily lead to boredom, which in turn can lead to spending money unnecessarily. When people are bored, they tend to seek outside entertainment that can quickly make a dent in your bank balance. Some good planning can go a long way in not only saving you money, but also in creating some memorable times with your friends or family.
For example, instead of giving your children R200 to go to the movies, have them invite their friends over for a film night – rent a DVD or two and make some popcorn on the stove or in the microwave. You could also consider starting a holiday project, and encourage your children to do the same – whether it is planting a small vegetable garden or another DIY project.
