It's that time of the year again… and whether you love it or hate it there is definitely something magical about the build-up to the festive period.
As supermarkets start to deck their aisles, children come home from school with unidentifiable glittering decorations and the party invites begin flooding in so, unfortunately, do the bills.
As we head towards the end of another year, we tend to take it as an opportunity to reflect and ask ourselves — what have we learnt?
One of the key lessons we have seen come to light from the recession is the importance of saving and being financially prepared for the future.
The festive season is a wonderful time for giving (and spending!), but how do we ensure that we maintain our festive cheer and don't get put onto Santa's naughty list?
Deck the halls on a budget. In the lead up to the festive period if you tighten the purse strings and stick to your budget, you will find you are able to buy gifts for friends and family and still have money left over for that much needed eggnog latte at the end of a long day at the mall. Think about the little treats you usually let yourself have and rein them in, these can really add up over the festive period and make a difference to you Christmas bank balance.
Write a list and check it twice. If you have decided to buy gifts for your family and friends, make a list as soon as possible and keep your eyes out for any upcoming discounts or sales, but remember, it's really the thought that counts. Gifts that entertain the whole family are a great idea. Why get a Wii when a good old fashioned board game is cheaper and will enable the children to interact with the more senior generation instead?
Avoid the ghosts of debts past. Don't go overboard on your spending. We often eat too much, we get given too much. We expect too much. Don't let your rising credit card bill come back to haunt you in the new year. Practice moderation at Christmas and the benefits will see you through into spring.
Create your own Santa's workshop. With a little imagination and a flash of creativity, you can make any number of great gifts.
You don't necessarily need to spend a huge amount of money on presents. Most kids would rather have someone to play with than something! One of the best gifts is time and spending that with your family and friends is what's most important.
Don't pile on the Christmas pounds. Shop around and look for competitive prices before you buy goods for your celebrations. From tinsel to turkey, candy canes to crackers, if you have a budget and list of everything you need, you can avoid wasting money on last minute panic purchases. After all who can tell the difference between a Dh30 and a Dh15 cauliflower?
Whether you are dreaming of a white Christmas (which means you must be heading for the mall) or the new Porsche that you have asked Santa for for the last two years running, remember that being frugal this festive season doesn't mean less merriment.
By managing your finances and tucking a little bit away into savings, you can rest easy this Christmas that you are financially secure for the future and still look forward to what Santa may bring.
Happy holidays!
The columnist is Head of Personal Banking for Lloyds TSB Middle East. Opinion expressed are his own and do not reflect the views of his organisation or of Gulf News.
