How to save money this festive season

The holidays are here once again and you may be tempted to throw caution to the wind and spend like there is no tomorrow.

In fact, if you are lucky enough to have had a Christmas bonus from your employer, you may feel like you have a bottomless supply of money at your disposal.

But before you decide to go ahead and blow off all your money, here are simple yet vital tips that may help you pace yourself.

Make your party a potluck: It is almost a given that this festive season you might host either your friends and relatives with lots of food and drinks.

It can be overwhelming planning for such huge numbers so instead why not split the burden ( and the cost) by having a potluck?

You can decide to handle the main dishes and then have everyone else bring over appetizers, snacks, drinks and even dessert. This way you save money and also get every one involved with the festivities.

Carry cash when shopping: The principle behind this is simple. If you have cash on you, you are actually able to keep track of what you are spending. An article on Career Point Kenya points out that shopping with money on your card or on your phone does put you at risk of going way beyond your limit, especially if you are also not diligent with keeping track of your receipts.

Shop at the local market: It can be tempting to want to go grocery shopping at the supermarket where there isn’t much of a hassle and where produce is arranged neatly and conveniently packaged for you, but it really is more expensive.

You would rather wake up early and go to the local market where you can even bargain and get more value for your money. Marikiti in Nairobi is a beehive of activity from as early as 4am in the morning and you can get great value for your money and a lot of variety for as little as Sh1000.

Travel off peak: If all circumstances work in your favour, that is, you can get leave really early or much later, and your relatives do not mind seeing you before or after Christmas, then plan to travel before or after the holidays.

Hotels will be less full in early December or January which means you will get all the attention you deserve as a guest. You can actually spend quality time with your family without pressure. Roads will be emptier and your travel expenses will be less.

Jackline Wanjiku Mburu, a financial advisor with ICEA Lion Group says: “Start a saving plan early in the year instead of using all your income of December. Plan early and book the holiday early. Better still, go on holiday in January or November when its cheaper.”

Look out for restaurant offers: Hotels are busy this time of year, not only with those staying in, but also with people looking to treat themselves with a more exciting menu. Buffets are way cheaper than the a la carte option , and it does offer huge variety.

Some eateries have offers if you are in large groups which also saves some money. If you fancy having drinks, take advantage of happy hour where you get drinks at half price.

Pay your bills upfront: January is just a few weeks away. Life will still need to go on and that means there will still be bills that need to be paid. To avoid getting caught up in the ‘Njaanuary’ fever, pay what you can right now. Whether that means school fees, rent, maintenance fees, whatever fixed costs you have take care of them now. If you can plan a budget ahead of time and set aside money for January, go ahead and do so and enjoy your December in peace.

Prioritise your gift giving: It is much easier said than done, but if you want to save some money, really think about who you are going to gift. Depending on how much you have to spend, this will keep things in perspective. You can then choose to spread out your gift giving for other people during special occasions in the year.

Stick to your budget: This will save you a lot of stress and debt. Make it a point to stay within the amount you had set for yourself. However , bear in mind that other expenses that you had not planned for may come up. This is why you should have a miscellaneous budget that caters to those emergencies or unforeseen expenses.

Simon Kiarie, Chief Financial Controller at Habib Bank says: "Say you have an outing that costs you Sh150,000 and you had planned for Sh100,000 you can add Sh10,000 as your miscellaneous and find a way to work with the amount you can afford."

Sticking to your budget does not mean being a miser. "It is okay to spend on yourself and the people you love. Developing a miserly attitude will in the long run work against you when you need a helping hand, so just learn to strike a balance," he adds.

Don’t be afraid to say NO: It is so tempting to throw caution to the wind and live in the moment but you have to learn how to say no. You don’t have to get something just because it’s on offer, you don’t have to eat out every weekend and you certainly do not have to go for an event, if you are going to suffer for it later.

Waceke Nduati-Omanga of Centonomy stresses this in her article 5 Tips to get you Through the Holiday Season: "If it leaves you in debt you cannot afford it. If you feel you have to borrow for something, don’t do it. Borrowing for Christmas spending is a bad idea. Borrowing to go on a holiday is an unwise financial decision. Let this be a lesson for next year on the need to start saving early. If the activity will leave you with little or no money, you can’t afford it."