Be financially savvy this festive season
The New Year should be a time when employees return to work relaxed, rejuvenated and ready to throw themselves into their job. Most people have, over the festive season, had some time off, spent time with family and friends, and spent their annual bonuses on gifts and entertainment. This, however, can stretch budgets to the breaking point and, come the new year, high-interest credit cards are maxed out, and limits on store accounts are all but exhausted. At the end of the season the reality of the situation becomes apparent when the bills start pouring in which can lead to depression and long-term debt which negatively effects productivity.
To ensure your employees come back to work happy and ready to tackle the challenges of the job head-on Nolo Finance & Law Firm have compiled a few tips to share with your employees that will help them to be generous without inviting disaster.
Shopping Tips
Cut down: easiest way to reduce how much you spend during the holidays is to exchange gifts with fewer people. You might even talk to some people in advance and agree that you won't exchange gifts but will get together to do something you both enjoy. Some families agree to a limited gift exchange, with each person responsible for buying for only one other person (rotating randomly every year).
Find alternatives: Be creative. Homemade treats, a family photo etc.
Budget: Once you've figured out who you want to buy gifts for, determine your overall budget and decide how much you want, and can afford, to spend on each person. It also goes without saying that you should also stick to your budget. This takes discipline so try to do your shopping with someone who can provide advice to keep from overspending.
Start early: Good deals are often available before the official holiday shopping season starts. Prices are usually lower, you have more time to take advantage of bargains and you can find some great deals on models that are being phased out toward the end of the year.
Do research: Before you hit the mall, learn about the features and options available on particular products, especially expensive items such as cameras, video equipment, sporting goods and appliances. Read up on different makes and models so you won't be persuaded by the more costly recommendations of salespeople.
Find bargains: Studies have shown major price variations, often 50% or more, in the same area for identical products, especially audio-video and computer equipment. Don't assume that prices are always lower in catalogues or on television no matter what their ads claim.
Avoid unnecessary warranties: Resist the pressure to buy an extended warranty or service contract for most products. Extended warranties often duplicate the product's existing warranty and are rarely worth the extra cost.
Keep records: To make sure you stay on track, keep all sales receipts. Receipts will also come in handy when monitoring your credit card statements. It's nice to get a gift receipt for your recipients, they'll enjoy the gift even more if they can trade it in for something that fits or suits them better.
Save: The best way to ensure that you won't overspend in the festive season is by saving for it. Use a monthly debit order to put away an amount to use for end-of-the-year expenses. You could also start a stokvel with friends. As we all know, peer pressure can be more effective than self-discipline. Every month each member contributes an amount, which is shared at the end of the year.
