At the end of what was a financially challenging year for all of us, it will be tempting to simply splurge out this festive season. While you certainly deserve to reward yourself for your hard work this year, Valerie Leeming, executive director of Interface, an employee financial benefit schemes company, lists some silly season survival strategies to ensure this festive season does not negatively impact your financial well-being in the new year:

1. Take time now to revise or set your financial goals for 2010 and beyond.

   What do you want to achieve financially? Do you want to be debt-free (click here to learn how)? Do you want to retire financially independent (click here to learn how)? Perhaps you want to save up for a dream holiday (click here to learn how), the best university education for your kids (click here to learn how) or to buy a new home?

   What steps do you need to take to achieve these goals?

   If you have an inspiring vision of your financial future, and exciting financial goals, it will be much easier to deal with the impulse to spend recklessly.

2. If you have not done so yet, draw up your December budget now!

   Knowing exactly how much you will need to meet all your financial obligations will be sobering and a very effective way to curb unnecessary spending.

   Include a 'holiday budget' to cover those extra holiday expenses such as bonuses for domestic staff, gifts, party clothes, festive decorations, parties, etc.

   (Click here to learn how to budget)

3. Draw up a budget for the long month of January before the holidays, making provision for those New Year’s expenses such as school fees and uniforms, and remember to factor in the increases in your bills and premiums that will take effect in the New Year.

4. Long before your Christmas bonus arrives in your account, decide exactly how you are going to spend it.

   Allocate some money for simply splashing out and spoiling yourself and your family, but use at least three quarters of your bonus to make a real, lasting difference to your long-term financial well-being by, for example, paying off debt, paying extra into your bond (click here to learn why paying extra into your bond is the best investment ever) or saving up towards your long term financial goals.

   (Click here to learn more about the best way to save for long term goals)

5. To avoid falling into the silly season spending frenzy, make a list of the gifts you really need to buy and the things you would really like to do this holiday.

   Be creative! Gifts don’t have to be 'things' and outings don’t have to be expensive.

   Then prioritise the items on your list and allocate a budget for each one.

   The most important part is to be absolutely disciplined in sticking to your budget and priorities!

   Article continues on page two...

   
   

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