Smart festive spending tips to avoid the stress of Janu-worry

The fun of Dezemba is often followed by the stress of Janu-worry, as many South Africans will attest.

On top of that, the likelihood of festive season (over)spending is preceded by all the temptations of not just Black Friday, but what has morphed into deals being offered throughout the month of November.

The irony is that people who spend recklessly in December often spend the next few months grudgingly undoing the damage, warns Old Mutual's Group Head of Financial Education, John Manyike.

"School fees, credit card repayments, emergencies, and transport costs just all tend to arrive as the festive glow fades. This is where 'December millionaires' become 'January beggars'.”

The solution isn’t to stop enjoying life but to live it smartly - even small changes, like setting aside a ‘fun fund’ throughout the year, can help you enjoy guilt-free indulgence come December.

True soft living, he suggests, is not about about designer labels or beach villas, it’s about peace of mind.

And, being able to rest, celebrate, and spoil yourself without fearing debit orders and school invoices in January, is the ultimate luxury.

Part of this is to keep life simple - prioritise your essential items such electricity bills, mortgage, car maintenance and debts and use what’s left to put into your fun festive budget to avoid January regrets.

Just think of changing the way you manage a potential impulse buy as a start, suggests Thabo Hollo, Financial Education Programme Manager at Old Mutual.

PAUSE and REFLECT are the magic words in this situation, Hollo says.

"There you are in the queue, carrying this thing you did not plan for. Just pause for a moment and ask yourself some questions - is this something that you absolutely need at that moment, is it something that you cannot do without? Is it possibly something that can be substituted? What am I willing to sacrifice or forego to just buy this one thing? So, pause, and reflect. "

Old Mutual's list of steps to follow also includes useful ideas like setting a realistic budget that covers all aspects of the holiday and STICKING to it, and - with agreement from the family, setting a top limit on the value of gitts.

ALSO READ: Festive season spending: How to plan so you can avoid the Janu-worry blues

Scroll up to the audio player to listen to Hollo's detailed advice, and click here for the Old Mutual list