Festivities on a Budget: How to Save for the Holidays

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During festive seasons, prices of goods and services are usually on the rise, including perishable and consumer products.This persistent hike in the cost of goods can be attributed to high inflation, currency devaluation (with pounds being exchanged for N1,005/￡1), which further worsens the standard of living as monthly earnings of most people can barely sustain them. 

With Christmas around the corner, it is important to live within your income by shunning all manner of impulse buying and avoid debt accumulation after the celebration. There is no doubt that Christmas can be financially stressful for most families, especially if expenses are not planned. Besides, in the quest to have a rich experience, it is easy to yield to pressure while trying to meet the expectations of friends and family. To keep yourself from begging in the new year, set a spending limit based on your earnings and you will be better off for it.

In this article, we share some tips to help you enjoy your festivity on a budget.

Create festival budget

First thing first, make a list of the things you will need to get during the festive season. This could range from food, decorations and gifts you plan to give family and friends. 

Once you have been able to create a workable budget, try as much as possible to stick to your budget, especially if you desire to manage your money or live within your means. But if you have not created one, it is not too late to do so, because it will enable you to track down your expenses. 

You can start by listing the names of people you intend to give gifts to during the festive season in a diary or book. It is also important you ascertain your financial strength to know how much you can easily spend or give out this season.

Have a special savings account for the festive period

If you know how much you’re likely to spend during the festive period, the next thing is to decide what you will be saving from now till the time comes. You can open a savings account or a fintech app like Ladda specifically for Christmas or festive savings and name it accordingly. You could also consider automating transfers into this account. Ensure you avoid making consistent transfers from this account, otherwise, you might end up spending the money you plan to put away for the holidays. 

Shop early and smart

November is the beginning of the sale season, and a time when you can be easily carried away by discounts, and end up stocking up on things that you do not need. 

We recommend you shop early and get your gifts early enough to cut down costs. Imagine if you had bought a bag of rice earlier in preparation for December, you would have saved some amount of money on this. Now that you still have a few days until December, map out what days you'll be shopping, what market or stores you'll be visiting, and what you'll be buying. If you do this, you'll be able to minimise your cost.

If, however, you missed the chance to jump on the early shopping train this year, don't worry. Just remember it in January when you’re budgeting for the next Christmas season.

Avoid debt

One habit you must cultivate this season is to be yourself. Do not go into debt trying to create what you think Christmas should be or trying to impress people. 

Always remember January is three months in one. Don’t finish your December income in a few days of the celebration. Be prudent while you are enjoying the celebration. Besides, you do not want to stress yourself paying off debts in the new year. 

Plan for your trip

One way you can plan for your trip is to book your travel tickets ahead. Don't wait till the last minute before you do that. During one of our webinars in September, a travel expert shared different tips on how you can plan your trip for as low as N200,000, depending on where you plan to go on your vacation. You can catch up with this webinar and others, when you join the MoneyAfrica community. 

Also, if you are travelling to your village, buy and travel with the important things you will need. Some village markets tend to rip off returnees. They create an instant price hike for their goods and services. Have a budget for how much you will spend in the village or wherever you are going to celebrate the festivity. Once you exhaust your budget, pack your clothes and come back to your base, to avoid stories that touch the hearts.

Plan for the long month

How much do you need to get by in a month? Arrange that amount and leave it where you won’t have access to it until January. The 13th-month salary and Christmas bonus is your January welfare package. It is not only for Detty December or splurging. When the festive season is over, life will continue, which will require money for you to survive.

In conclusion, you did great in 2022 and it is not out of place if you decide to give yourself a good treat. This festive season is a time for you to rest, relax and spoil yourself for a year well spent. You are planning a vacation? Enjoy it as long as it’s in your budget. Don’t overspend because you want to celebrate Christmas, and remember there is life after Christmas—bills to pay, including your children's school fees.

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