Three in four people said that buying something impulsively during the pandemic has positively affected their mood. We’re all a little scared, the future is kind of up in the air, and it feels good to just dull the stress and spark some joy with a little harmless shopping. And you know what feels even better than spending money on yourself? Spending money on other people. But, statistics confirm that South Africans are indeed poorer after the pandemic, despite easing lockdown measures. This sentiment was echoed in Black Friday statistics which showed a 52% decline in the value of transactions when compared to sales in 2019. People simply don’t have money to spend! If you find yourself wanting to spend money you simply don’t have, here are seven tips to help fight festive overspending:
- Draw up a plan of action: Strolling mindlessly through the mall with beautiful window displays and price call-outs beckoning you into shops is a recipe for disaster if you are prone to overspending. You need to know what you need and where to get it. Do your research before going to the mall and know where you can get the best deals. Make conscious shopping decisions rather than being swept up in the spirit of a ‘great festive deal’.
- Have a budget: Whether it be festive food shopping, gift shopping or even picking a holiday destination be realistic, know what you can afford. Decide on your maximum budget and allocate spending for must-have items and then a small amount to use freely to treat yourself to something special.
- Shop around for a spending plan: Debt is expensive – if you max out your credit card, you defeat the purpose of the ‘festive deal.’ Look for alternative payment solutions such as an interest-free spending plan where you can pay in instalments. Solutions like PayFlex.
- The big question: Do I want this or do I really need this? Differentiate between what you need versus what’s nice to have. Get an item that would be most impactful in your life. The same applies to buying gifts for others. Do they need the item or are you buying something you’d actually want yourself.
- Write a list: A shopping list keeps you focused on what you going to buy.
- Sign up for the newsletters: Get first-hand information of festive deals and follow select retailers on the various social media platforms so that you know exactly what’s on offer and where.
- Shop online: With social distancing in mind, avoid the long queues and chaos seen in some retailers. Just click away with the online bargains.
Don’t become a festive overspending statistic. Financially, it will make January far less stressful. If you would like to start 2021 with a clean slate by tackling your debt, reach out to our team of qualified debt counsellors. DebtCare offers a free online assessment to everyone wanting to investigate Debt Counselling as a solution and need help getting out of their financial situation. Our Debt Counsellors are ready to answer any questions you may have about Debt Counselling. Call us on 0861 977 873 or email firstname.lastname@example.org.