Little By Little
The least painful way to plan for the holiday is to put a little bit aside each month all year round. Get your bank to set up a standing instruction that puts 10 to 20 percent of your salary into a saving account. One it's safe in another account, the temptation to spend it will be less
Limit Your Plastic
Credit cards can be extremely useful for managing shot-term debts as you are able to borrow money interest-free for some weeks - as long as you pay before the due date! However, it's very easy to overspend when the shops are so nicely decorated and everyone is excited about the upcoming holiday. Remind yourself of your total expenses each time you whip out your card - or leave it at home and pay with a debit card!
Know your needs from your want
Festive spending often includes buying new sofas, carpets, and curtains. While any shops offer discounts on furnishing just before the holiday, borrowing money to buy items that don't need to be changed adds to your financial burden - so think twice!
Add Up Installments
Offers of zero percent installments where you pay small amounts like USD 10 a month don't look to bad. But if you have three or four of those to pay off every month it adds up to a big chunk of your income. Keep a list of estimated expenses against your salary to see what you can afford.
Count Long-term Costs
Personal loans may seem like a good answer - however; do consider that some banks charge three percent a month. As credit cards charge 18 percent per annum, this is double the rate credit card companies charge. When calculating how much your loan costs, don't look at the amount your pay off each month, instead look at how it adds up over time.
Go Online
Shop around on the Internet to source for presents. For example, these is more perfume and aftershave sold on Christmas Eve that the entire month of August! Look out for online retailers like www.netaporter.com that have regular clearance sales of designer goods. But you must remember, don't overspend!
