5 Clever Ways to Spend Your December Salary Wisely
December holiday is the most anticipated part of the year, but it often leads to a “January financial hangover.” To avoid this, you must manage the money early.
Written by Benedicta Enyonam Oklu, Community Marketer at Jobberman Ghana.
Manage your December salary wisely to avoid a January financial hangover.
Hide a portion of your salary in savings to resist impulse purchases and stick to a strict budget.
Prioritise clearing debts before December spending to enhance peace of mind in the new year.
Shop early and avoid impulse buys by sticking to a pre-written list, especially during sales.
Allow yourself to have fun, but cap entertainment spending at 20% of your total December salary.
We are always tempted to spend our December salary on holiday shopping. Yes, December holiday spending is the most anticipated part of the year, but it often leads to a “January financial hangover.” To avoid entering the new year broke, you must manage your early December salary, usually paid between the 14th and 20th, with a strategic plan. By setting a budget, clearing debts, and avoiding impulse buys, you can enjoy the festivities without draining your bank account.
Here are five clever ways to spend your December salary wisely.
1. Hide the Bulk of Your Cash Out of Sight
Before the excitement hits, move a “chunk” of your salary into a savings account. Automate this first transfer by scheduling an automatic sweep to savings on payday. If it’s not in your primary checking account, you won’t be tempted to whip out your debit card for a whim purchase. Create a strict budget. Decide exactly what you will spend on clothes and gifts, and leave the rest untouched.
2. Prioritise Clearing Your Debts
Personal loans carry high-interest rates that eat into your future wealth. Make clearing any outstanding balances your priority. Entering January with zero debt provides a level of peace that no Christmas gift can match. You can learn more about managing high-interest debt to stay ahead. How would you spend your December salary to avoid going broke in January?
3. Stop Impulse Buying Before It Starts
Prices rise as the holiday approaches. To avoid the “holiday tax,” shop early and stick to a pre-written list, don’t “Window Shop”. If you are browsing for fun, you will find something you don’t need. Stay Sober While Shopping; never make financial decisions when your judgment is impaired by holiday spirits or alcohol.
4. Leverage Sales and Discounts With Caution
Enjoy your Christmas with caution and end it debt-free.
Many shops hold clearance sales to move stock before the new year. While discounts are great, they are only “savings” if you were already planning to buy the item. According to consumer protection guidelines, retailers use slashed prices to lure you into buying things you don’t need. Only buy what is on your list!
5. Have Fun With a Caution Cap
You worked hard all year, and you deserve a reward! Whether it’s a spa day, a weekend getaway, or a nice dinner, you should treat yourself. However, keep this to 20% of your overall salary. If a luxury splurge isn’t in the budget, focus on low-cost joy, like a home-cooked meal with family.
Managing your December holiday salary requires a balance of discipline and celebration. By moving your savings out of sight, prioritising debt, and capping your “fun” spending at 20%, you protect yourself from the dreaded January financial slump. Don’t let the excitement of the season dictate your financial health. Use this time to audit your habits and enter the new year with a clear mind and a full bank account. With these five clever strategies, you can enjoy a joyful, stress-free holiday while staying on track for a prosperous year ahead.
