Simple tips to avoid going over budget this festive season

Christmas is a time for giving, but this does not mean that you have to put yourself into debt. More than often you tend to get carried away by sales that promise massive savings. You end up buying items that you do not need or overspend on gifts for friends and family thinking that you have scored a bargain. 

Sticking to a budget is difficult for many. It is so easy to get swayed into debt by that great Black Friday deal or festive sales. The key to sticking to your budget is to have a sense of self-control and to be money-wise. 

Here are some tips that will help you avoid going over budget this festive season:

Create a shopping list

Make a list of the people you are buying gifts for this year. Next to each name list the maximum amount of money you are willing to spend on them. Then include an option or two of what you think the person may like within that budget. If the gift goes on sale then you have scored a deal and saved money instead of overspending. If you have spent a bit more on one person and lesser on another then you may break even and still be within your budget. 

Do not forget to include a budget for food, decorations, or travel expenses for the festive season. If you do not have enough money to cover your budget, consider cutting back on some of the expenses. For instance, do you really need to buy a gift for your neighbour's dog?

Be a smart shopper

Many retail stores and credit card facilities offer points for purchases you have made during the year. Some of these points do expire so it would be wise to use them for the festive season. Most people save their points to use mainly during the festive season. 

Take advantage of 3-for-2 deals that are popular at the moment. For example, you have three sisters and have a budget set at R200 for each sister. If you find a suitable gift that has a 3-for-2 offer you will save yourself R200.

Retailers are always trying to beat their competitors' prices. Shop around for the lowest prices before making a purchase. You can compare prices online or calling the store to avoid the festive rush and crowds. 

Knowing when to shop is vital. Be strategic and plan when to make your purchases. If you plan on buying your parents a new TV then the best time to get it at the lowest price possible would be on Black Friday or Cyber Monday. Deals on toys and gift sets are generally released later in December. 

Avoid self-gifting

You do not need those new sunglasses if you have at least three pairs collecting dust - even when they are less 50%. How many times have you told yourself "I need to spoil myself" and "I deserve it" this year? If you genuinely feel like you do deserve a treat then set aside a budget for yourself. Do not go overboard because "It's been a rough year". Aside from overspending on others, going on a shopping spree for yourself will lead you to a new year filled with debt.

Plan ahead for next year

A great way to avoid getting yourself into debt during the next festive season is to start a Christmas fund at the beginning of the year. Again, you can create a shopping list as early as January and aim to save a little each month to meet that goal. Also, many stores try to get rid of Christmas stock in January at ridiculous prices. End of season sales are also bound to score you a bargain.

Do not let your debt become the grinch that stole Christmas. You should be able to enjoy the fun from your festive season without worrying about how you will survive the 1000 days in January before your next salary. Remember, the festive season is about being with your loved ones and making memories that will last a lifetime - not how expensive their gift was.