​Holidays are time to wind down the year, spend time with family, enjoy and prepare for the next year. It is during the festive season that most of us put our financial guards down and end up going off track from our financial goals. It is for this reason that we need to catch ourselves and ensure that we are conscious and do not overspend.

​Some of the key mistakes that we end up experiencing include:

​1. Overspending: Overspending can be brought by a number of key issues. Among them are:

​a. Lack of a holiday budget. The lack of a budget keeps you in the dark about how much you need to spend and this makes you vulnerable to overspending.

​b. Not tracking our budgets.

​c. Being the good relative or friend and so you are the one hosting, transporting people etc. You end up spending a lot of money doing this.

​d. Taking advantage of offers and buying things that you do not need immediately.

​The only solution to overspending is having a budget, stick to it and have someone as your accountability partner especially if you are the person who has challenges with money.

​2. Debt challenges: Debt has been one of the biggest challenges that most of us face in our journey to financial freedom. A lot has been said about the challenges brought about by debt but during these times we need to be conscious and take action on containing our debts. Some of the things that can go wrong include:

​a. Forgetting to pay your loan installments

​b. Using your credit card extensively while on holiday

​c. Taking the holiday financing deals

​Here, the solution is to ensure that you pay your installments using standing orders so that you do not forget and avoid having an open-ended credit card with you. You can choose to leave it at home.

​3. Peer pressure: we often see our friends and relatives enjoying holidays and we end up joining them even if it was not part of our plans to show that we belong. The only solution to this is being comfortable in our own position and leave life with what we can afford.

​4. Not investing: For us to go far in the wealth management journey, discipline and consistency is key. We should ensure that even during these times we continue putting our money aside and making it work for us.

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