Christmas is a time to give and to celebrate with friends and family, but the state of our economy and rising costs mean it’s important not to overdo the spending.
We’ve put together some top tips for helping ensure you keep a lid on Christmas spending, without putting a damper on the festive season.
If you haven’t already, set a budget
Make a list of the people you want to buy presents for and itemise exactly how much you want to spend, individually and in total. Then stick to your plan.
It’s surprising how fast the cost of lots of little and rather meaningless token gifts can add up. Instead aim to buy each person one item they’ll really appreciate, and leave out the Christmas-themed chocolates, baubles and so on.
Similarly, decide how much you can afford to splash out on food and drinks, and stick to a budget.
Do cost comparisons
Before you hit the shops, do a cost comparison of the items you intend to buy.
Search on the internet, make use of price comparison websites such as DealZone and Catch of the Day and visit online shopping sites, such as takealot.com and wantitall.co.za.
Also check Pick n Pay and Checkers for relevant food specials.
Control food costs
It doesn’t cost that much to enjoy one special meal, or even a few days of extra luxuries. It’s when extra food spending lasts the whole month or longer that it really adds up!
To control food costs, plan a special meal and some treats, but stick to your normal shopping habits surrounding the celebration.
Another major contributor to holiday spending is the cost of alcoholic drinks. You can reduce costs without losing the “sparkle” by substituting some homemade fruit punch or sangria for more expensive, branded mixed drinks. Also favour local wines and craft beers over more expensive, international brands.
Use your credit facility
If you have a credit card that’s not maxed out, use it. You’ll have a month’s respite before you have to pay back the cash. Be sure to settle the full amount, or you’ll incur interest, and that could cost more than you bargained for.
Recycle and reuse
Don’t buy new decorations and tinsel every year; recycle and re-use. Make your own Christmas crackers, use decorated newspaper or plain brown paper as wrapping, and invest in an artificial Christmas tree that will last several years.
For next year, start well ahead of Christmas
Ideally, save small amounts every month to put towards celebrations at the end of the year. That way, holiday spending won’t put a dent in your bank account.
Also, don’t wait until the last minute to do your Christmas shopping. Instead shop smart, cashing in on specials the rest of the year.
As well as buying gifts ahead of time, you can buy alcoholic beverages months beforehand, when they’re offered at discounted prices.
If you need a short-term loan
If you need funds quickly to tide you over a tough spot, you can use an asset you own to secure a short-term asset-based loan. At Lamna, the process is quick, efficient and confidential, and there are no credit checks.
For more information about using an asset to secure a short-term loan, contact us on 086 111 2866.
ILLUSTRATIVE EXAMPLE
Client borrows R10,000 for 90 days.
Loan Amount | Repayment Period | Monthly Interest | Total Cost of Loan | Initiation Fee | Monthly Fee | APR |
---|---|---|---|---|---|---|
R10 000 | 3 months | R500.00 | R2 914.50 | R1 207.50 | R569.00 | 60% |
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.