7 MONEY TIPS FOR THE CHRISTMAS HOLIDAYS

With just a few days left until Christmas, many of us eagerly prepare for the most exciting holiday of the year. However, it's important to acknowledge that the holiday season can also be a source of financial stress and pressure for some. From buying gifts for family and friends to attending festive events and parties, it's easy to feel overwhelmed and stretched thin during this time.

It’s important to remember that the true spirit of Christmas lies not in material possessions or extravagant celebrations but in the love and connection we share with our loved ones. By focusing on the things that truly matter, like spending quality time with family and friends, volunteering, or simply enjoying the beauty of the season, we can create a holiday season that is both meaningful and memorable.

So, as we approach the holiday season, let's not get caught up in the hustle and bustle of the festivities, but instead take a moment to reflect on what truly matters and make this Christmas one to remember.

Don’t forget that Xmas can also be a very lonely time for some people who may feel isolated. It is also the time to practice random small acts of kindness, help a neighbour out who may be living alone, donate a few groceries to a family in your community that is struggling etc.

Here are 7 money tips for the Xmas holidays and not losing focus on the year 2024 ahead.

Tip 1: Plan for the Xmas that you can afford not that you wish for

When planning for Christmas, it's important to be practical. With Old Mutual's On The Money program, we discuss money personalities such as the "dreamers". Dreamers are typically idealistic, thoughtful, and compassionate individuals who tend to use their money to define and develop themselves. However, this money personality often focuses too much on their dreams and may not pay enough attention to their finances.

To be practical with your Christmas plans, it's important to avoid living beyond your means as most Zimbabweans say, "Tanha Dzaunosvikira", which means that you shouldn't ‘live a champagne lifestyle on a freezit budget’.

Tip 2: Resist the urge to spend on impulse

If you have plans for Christmas resist the urge to spend impulsively. To avoid overspending, you can take some measures, such as not carrying more cash than you need while shopping and creating a shopping list that includes all the necessary items. This will help you stay within your budget and avoid unnecessary expenses.

Tip 3: Don’t borrow for consumption

It is advisable to avoid taking out loans for everyday expenses like groceries, dining out, and buying drinks. Although there may be societal pressure to keep up, it's important to make sound financial decisions.

?Consider eating at home more often, organizing friendly cook-offs with your friends, stocking up on groceries hosting people at home, and encouraging everyone to bring and share. These alternatives are not only cost-effective but also provide opportunities for fun and social interaction.

Tip 4:Always have a budget

The "On The Money" program's "Secret of the Elephant" teaches us to create a budget. It advises us to separate our needs and wants while considering that our income for December will need to cover us in January. To effectively manage our finances, we should have a budget for gifts, clothes, events, etc. and commit to sticking to it.

Tip 5: So what if you can't afford Christmas? Then go cold turkey, be unavailable

"What if you don't have enough money this Christmas? The little money you have can only cover you and your family's basic needs. It's a tough situation, and you cannot afford any festive expenses. However, you are worried about the pressure from family and friends who may expect you to participate in events and festivities that come with a cost.

If you find yourself in such a situation, it's okay to decline invitations to events and gatherings that may put you under pressure to spend. Instead, opt to spend time at home, watch television, do some cleaning, gardening, or any other projects that can keep you busy and entertained. This way, you can avoid any unnecessary expenses and still enjoy the holiday season in a way that suits your budget."

Tip 6: Apply the 3 Rs

Reduce, Reuse and Recycle

Reduce your consumption of certain things. Reuse items like clothing instead of buying new ones. Replace one product with a cheaper alternative.

Tip 7: Tackle existing debt

If you have received additional income from bonuses or other sources, you can use this as an opportunity to pay off any existing debt you may have.