Rein in spend­ing

Southern Gazette (Victoria Park) - - News - Belinda Cipri­ano

The Bare­foot In­vestor, Scott Pape, shares five tips to help keep fi­nances in check at the most ex­pen­sive time of the year.

WITH the silly sea­son in full swing, we caught up with Bare­foot In­vestor Scott Pape to chat about how best to pre­pare for the most ex­pen­sive time of the year.

Here are five prac­ti­cal tips from the man him­self:

BE PRE­PARED

Christ­mas is not an emer­gency; we know it’s com­ing ev­ery De­cem­ber even though it may creep up on us.

Plan ahead and fac­tor into your money buck­ets: my three sav­ings ac­counts are smile, splurge and fire ex­tin­guisher.

It doesn’t mean you won’t over­spend, but you have to be re­al­is­tic.

These days, peo­ple can spend a cou­ple of hun­dred dol­lars on some­thing they want and it doesn’t re­quire a lot of ef­fort, so I’m more about ex­pe­ri­ences.

Last year I booked a fish­ing trip with my Dad and my son; it was three gen­er­a­tions and it was good be­cause you couldn’t lose, it was a mem­ory we will have for­ever – not like that “thing” you get that you for­get about.

It was more about the ex­pe­ri­ence rather than stuff.

CUT OUT THE UN­NEC­ES­SARY STUFF

I’m not tight so I’m not go­ing to say stop buy­ing your latte, but cut from the stuff that makes no dif­fer­ence to your life – bank fees, credit cards, any money that you are giv­ing to a bank.

If you have kids, Christ­mas is a very ex­pen­sive time of the year.

Not only do you have Christ­mas, and ev­ery­thing that comes with that, you have school hol­i­days and then you have school fees to pay for so this time of year is a re­ally, tough for a lot of fam­i­lies.

If you are start­ing to think about it now, you are in trou­ble – you have to plan.

Christ­mas is the most won­der­ful time of the year but it is one of the most stress­ful times.

BOX­ING DAY SALES

These days, we have Sin­gles Day, Black Fri­day and Cy­ber Mon­day sales be­fore Christ­mas, so it makes sense to buy ahead.

The Aus­tralian model is “we are go­ing to leg you right up un­til Christ­mas and all the stuff we haven’t been able to sell, we are go­ing to dis­count on Box­ing Day”.

At the Box­ing Day sales, you might find a bar­gain but the idea of wak­ing up early the day af­ter Christ­mas to fight some­one over a dis­counted mi­crowave is not me.

The bet­ter idea would be to go on Gumtree or Ebay and see all the re­ject presents that peo­ple try to sell af­ter Christ­mas and that’s where you’ll find some bar­gains.

WHEN YOU SHOULD BOOK THAT HOL­I­DAY

The ma­jor­ity of fam­i­lies need to go dur­ing school hol­i­days, so sup­ply and de­mand says peo­ple are go­ing to pay top dol­lar.

If you can book 12 months ahead, psy­cho­log­i­cally you will get more en­joy­ment from that hol­i­day be­cause it’s some­thing you can look for­ward to whereas if you buy it last minute a lit­tle cheaper, you don’t get as much bang for your buck be­cause you’ve missed out on the an­tic­i­pa­tion.

Think about it from a kid’s point of view: at Christ­mas it’s all about an­tic­i­pa­tion and that’s what you need to do with your hol­i­days.

PLAN­NING FOR THE NEW YEAR

Look for­ward to 2019 and be in­ten­tional.

Sit back and start to make plans, so you aren’t caught out this time next year.

My book isn’t about get­ting rich; it’s about mak­ing peo­ple com­fort­able with their money.

Bare­foot In­vestor Scott Pape.

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