The festive season is here. It is a time when people roll out the drums to celebrate and thank God for seeing the end of the year.

It is also a time to be merry with loved ones, relax and have a great time.

However, research has shown that this period is a season when people overshoot their budget and become anxious. It is a well-known fact that at Yuletide, people go broke even before the first day of the New Year.

If there is any month of the year that so many people regard as “dry,” it is January. Why? It is simply because of the amount of money that has been expended during Christmas festivities.

How do you avoid getting into debt this festive season? How do you ensure that you live on budget and not overshoot your income?

The following steps will help you not to go broke during the New Year.

1. Have a budget

Draw up a budget for Christmas and New Year celebrations. Determine to stick with your budget. Don’t just spend without anticipating what you will need during the holiday period.

Your budget does not have to be complicated. Use a simple Microsoft Office solution like Word or Excel to plan your expenses. Ensure that once you have that budget in place, you track your expenses to be assured that you are still on track.

2. Avoid Impulse Spending

One of the habits that make people go broke in January after the December celebrations is impulse spending. A lot of people spend just as they are “led.” That is not right.

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Endeavour to minimise or eliminate impulse spending in whatever form. You have made a budget; you will need to stick with it to avoid impulse spending. When you are tempted to spend on impulse, convince yourself that that is not the right course of action.

3. Save and save

Some people’s definition of December is to spend and spend. However, you need to know that spending and spending will not take you to your desired land of financial freedom.

Ensure that you save instead of spending all that you have. Continue with the saving plan you have had all through the year. It won’t pay you to spend all that you have in December. Friend, saving is good.

4. Get discounts on what you buy

Starting from Black Friday on the last Friday in November, there are discounts for the festive season flying around. Be on the lookout for discounts because they will save you money.

Be careful when you are hunting for discounts though, you may fall into the trap of spending more than you bargain for. Scrutinise the discount to ensure that it is actually genuine.

5. Remember January is around the corner

It sounds pretty obvious. But when you put it into perspective that January is just few days away, you will ensure that your December spending is limited.

Indeed, life goes on in January, ensure you spend wisely.