Power Report: 20 tips to have a merry festive break without going broke

Follow these tips for a festive season to remember - and not because you made unwise purchases.

Nobody likes a killjoy. Especially at a time of year when we just want to unwind and throw caution to the wind. I'm all for a good knees-up after a tough year (especially with Nenegate dealing such a crushing final blow), but there's something to be said for adding some savvy to your spending.

As a guest on a radio show last week, I was quickly labelled the "Grinch that stole Christmas" when I suggested taking a more sober approach.

One listener said I'd ruined her party plans.

Deep down, we all know it's more about playing smartly than putting a dampener on festive frivolity. It's about living and celebrating within our means this season.

Admittedly, it's a dull message to hear as you prepare to open a second bottle of the good stuff, but it'll hopefully give the start of 2016 some shine when it arrives.

story_article_left1

Even if we commit to just one thing from the following common-sense list, we're likely to be better off:

• Don't blow the year-end bonus if you are still fortunate enough to get it. Keep some back to treat yourself, using the rest to pay off your debt. You'll go into the new year in far better shape, at least financially;
• Most people are paid much earlier than normal at year-end - in mid-December - which makes January a very long month. Remember how far the December salary has to stretch and spend accordingly;
• Stash money for school stationery and uniforms. Know what school shoes you're buying: bonded leather is not leather. It lacks the durability, breathability and formability of real leather;
• If you've saved through the year and can afford a getaway, do it. If not, enjoy the company of friends and family at home, and take advantage of (possibly) a quieter town or city;
• If you're staying put with children, try to plan one major outing - to the aquarium or amusement park, say. Then make the most of what's free or low cost in your area - parks, museums, beaches, paddling pools;
• If you've left your gift shopping to the last minute, head out with a list of names, budget and ideas. Chaotic and random buying will leave you frazzled, out of time and out of pocket;
• Don't try to keep up with the Joneses or Khumalos. Rather be honest with family and friends about your financial situation (you'll find most are in the same boat) and limit gifts and feasting accordingly. Gifts can be limited to children, or you can opt for each person buying for one person only and play one of a variety of Santa games to match. Google "Santa gift games";
• If you've been disciplined all year and have points in eBucks, Smart Shopper, Greenbacks and so on, now's a good time to cash them in;
• Be wary of "bulk buys" just because you've got a full house. It doesn't always pay off. Products such as washing powder and toilet paper (both of which you'll use more during the holidays) are often more expensive the bigger the pack. Check the unit price
• Keep all receipts for at least six months. Even more so when buying big-ticket items such as fridges and TVs. Better still, take cellphone photographs or photocopies of the receipts;
• Shop at retailers with friendly change-of-heart returns or remorse-buy policies. Some stores refund cash, others only vouchers, some nothing. The Consumer Protection Act's refund, return or replace provision covers defective returns within six months;

story_article_right2

• Don't be lured into buy now, pay later offers; you'll pay more interest. And skipping monthly payments to give yourself more cash in hand is silly, especially with insurance. You'll be left with no cover;
• Talking insurance, make sure you add any new gifts such as iPads, smartphones and diamond rings to your policy to ensure immediate cover;
• Also make sure your insurer has adjusted your car's book value at the beginning of the year and every six months after that;
• If you're travelling abroad, avoid activating international voice and data roaming unless absolutely necessary. Opt for SMS roaming only or buy a sim-card at your destination to avoid exorbitant bills when you get home;
• Use your credit card to order online or pay for services such as flights and holidays. If the product doesn't arrive, the airline goes under or the hotel catches fire, a charge-back can be arranged by your bank;
• If you're hiring a car, take detailed pictures of the car before you drive off, and again when you return it. This should help you avoid being hit with a questionable damages bill later;
• Know your credit status by taking advantage of the free annual credit report from any credit bureau. If you're unhappy with the accuracy of any of the data, lodge a formal dispute with the bureau, which is obliged to investigate;
• Beware of opening new store accounts just to cover a holiday clothing spree or gifting splurge. Accounts are long-term commitments and have to be paid eventually. Falling into arrears - even for a month - will reflect negatively on your credit record; and
• Avoid buying on credit or taking out new loans. If you must, use National Credit Regulator-registered credit providers, borrow what you can afford to repay, and ensure you understand the agreement before signing it.

The Power Report is taking a break and will be back on January 17.