Its December yet again, the month that seems to have a huge impact on our finances, however, this year that doesn’t have to be the case. A lot of people seem to have problems with finances during December and this is mostly due to not budgeting properly, a lot of impulse purchases and generally overspending on unnecessary things. Well, its 2019 and we need to change that stigma surrounding “money” and avoid being broke when January rolls in.

Here’s how you can do that:

• Budget for all your expenses

Budgeting is key, that’s if you want to keep your finances under control. Be it purchasing new clothes or partying, you need to budget for everything and be aware of where your money is going. Plan for December two months before as that will prepare you mentally for the financial choices you will be making. Planning ahead will help you feel confident that you are in control of your finances as you head into the new year. However, if you happen to buy something that is not on your budget, also include it on your budget (as unplanned/additional expenses) because that will help identity those impulse purchases you tend to make without putting much thought into it.

• Never dip into your savings/emergency fund unless it’s an EXTREME emergency

Never ever use your savings/emergency fund for nothing either than an emergency, because if you do and an unexpected emergency comes along, guess what you will not have any money to deal with it and that will force you to use your credit card or take a loan to deal with your emergency, meaning you are making a huge dent in your debt and now you have to repay the bank including interest. Ask yourself, is that really worth it?

During December, keep your savings/emergency fund out of your head. That money is not there for you to spend and you should stay focused on keeping your spending habits under control. If you know you will struggle with fighting the temptation, ask your parents or partner for assistance because those are the kind of people who have the best intensions for you and they would more than willing to help you with your finances.

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If you don’t have the money management skills yet, using a debit card will ensure you don’t overspend and rack up debt on a credit card.

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• Don’t over spend

In addition to point two (2), if you happen to run out of money, AVOID tapping into your credit card and stay far away from using your clothing accounts. Resist the temptation of buying the newest summer trends using that clothing account because when January comes, you need to start repaying that money with interest added on it and there goes your hard-earned money down the drain on an item you might only wear once or twice.

You need to keep track of your expenses because that will stop you from overspending and teach you how to save.

Another thing you can do to avoid overspending, is to make use of pre-holiday sales, however, you must ensure that you buy thing you “need” and not “want” – like stocking up on non-perishable goods such as canned food. Before you head into the sale, to prevent impulsive and excessive buying, go with a list of things you need, and ask yourself: “Do I really need this?” If in doubt, then don’t purchase it – its that simple.

• Plan for holidays in advance

If you are planning to go on holiday in December, start planning for it 4 – 6 months prior and don’t depend solely on your December income. Save for the plane ticket, hotel, car hire and activities you intend on partaking on while on holiday and if you do that, you will not find yourself broke in January.

Doing this will ensure that you are taking control of your holiday expenses because you are financially prepared for it. When you officially go on the holiday that you have been planning, set aside money for your daily expenditures and add it into the budget, as this will guarantee that you stay at the top of your finances and don’t find yourself using a credit card for unplanned expenses.

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Do not save what is left after spending, but spend what is left after saving.

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• Stay in-doors

December is a time to be out and about, socialising with all sorts of people, however, if you don’t feel like spending your money, then stay at home. Have a movie night with your girls or bae or just have a home-cooked dinner (after all nothing beats a delicious home cooked meal). Staying at home will definitely save you money and you won’t be tempted to buy a whole lot of things which you quite frankly don’t need.

I hope this post will help you spend your money wisely and be a girlboss when it comes to your finances to avoid being broke in January.

Follow me on Instagram @charmaine_gumede.

Until next time…XOXO!