How do you make ANY month’s salary last until the next paycheck? But first, let’s prevent that January financial hangover.
Let’s be honest, it is not that we do not have a budget, the actual work is sticking to that budget. Enter the festive season, like a child in a candy store with no care about tomorrow.
The temptation to be extravagant is in plain sight, but watch out.
This is not to say that you should stick glue to your hands and bind them until the festive season is over. It simply means that you are going to get creative, use all available resources and keep your long-term goals in place.
Here’s how to do it.
Budget wallets
There are endless savings account options today including mobile money, money app wallets, and bank accounts. Separate your money into different money accounts according to expenditure.
For needs (December and January) these include rent, transport, food, phone bills, and utility bills. Use expense calculations from previous months to determine how much you have to keep in a given account.
Wants are where the fun is, going out for food, trips, and gifts among others. Put this money in the easy-to-access account.
Do not lose sight of your long-term goals, call this budget “future you” this includes things like saving for a house, getting out of debt, and an emergency fund among others.
The 50/30/20 rule
This budgeting rule states that allocate 50 percent of your income to needs, 30 percent to your wants, and 20 percent to “future you”.
However, take into account the taxes of the savings services you are using and find the best deals. This rule can also help you be more financially flexible during the season as long as long-term goals are not affected.
Free socializing
Check out socializing activities that fit into your budget. Suggest activities like board game marathons, watching Christmas movies, visiting local festive displays or public events, and also take advantage of meal deals.
Flipside gifting
Before you stretch your budget on gifting, try regifting presents you got the previous year that you have not used. Suggest a spending limit for your loved ones so you don’t have to worry about getting an expensive gift when you can’t afford to return the favour.
And when it comes to budget gifting, the possibilities are endless for creative presents. After all, the budget doesn’t mean cheap.
Some people get creative with DIY, playlists, among other surprises.
Get your points in
Check out loyalty schemes and cash-back schemes. Many companies and organizations offer discounts, coupons, and other schemes during this season.
Find out what benefits you might be entitled to and what relief you can get in different organizations.
Open up to friends
Engage your friends in talks about budgets to overcome the stigma that surrounds money. Each person is working on a different budget or mindset about spending.
Open the conversation about what money means to each of you, your priorities, and your challenges.
Adjust your plans to suit your budget. If you cannot afford to be part of all planned activities, pick out the ones you can afford to attend.
