How to avoid financial traps during holidays: simple rules of financial discipline

New Year holidays for many Ukrainians become a real test for their wallets. Spontaneous spending, gifts, and an overflowing holiday table often end in debt and guilt. Lena Shepel, an advisor on personal and business finance, told a UNN journalist how to avoid typical financial traps and start the new year more consciously.

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During the holidays, due to impulsive purchases and large expenses, it is very easy to lose control over your finances. The lack of a clear plan leads to money "spreading" among expenses for gifts, feasts, holiday decor, and more. That is why financial discipline during the holiday season is especially important.

The most common mistake during the holidays is that people do not plan a budget. It makes sense to think in advance how much we can actually spend on holidays, based on our income. When they don't do this, people often go into credit limits and spend more than they can afford.

The consequence of such an approach, sometimes, can be debts that drag on for several months after the holidays. In such a case, the expert says, no less a problem is people's reaction to their own financial mistakes. Self-blame only deepens stress and does not help find a way out.

The second mistake is when people start to bully themselves for it. The situation is already not very good, and the person also blames themselves for not having foreseen the budget. Instead, it is important to admit: yes, I am already at this point, and now the focus should be on what I can do about it, and not on "finishing myself off."

In addition to controlling your expenses, you also need to have a financial safety cushion. However, it should be taken into account that creating a reserve is a process that requires time, not a one-time effort before the holidays. However, Lena Shepel says, even minimal savings are important to preserve.

If a person wants to enter the New Year with a financial cushion, they should have thought about it at the beginning of the year. But if at least minimal savings are already available, the main thing is not to spend them on holidays. If you have a conditional thousand hryvnias saved, do everything to enter the New Year with this thousand.

The next step after accumulating a financial safety cushion is investing to multiply funds. But if you have not had such experience yet, it may seem difficult and risky. In this case, the expert advises starting with simple and understandable instruments, gradually building trust in yourself as an investor and the habit of investing.

"You can watch materials on YouTube, or materials in the "Investments" section on the Minfin website. That is, to explore this topic, in principle, to see: what instruments are there? Then for beginners, I recommend choosing a low-risk instrument called government bonds. These are securities from the state of Ukraine," says the expert.

According to the expert, you can invest quickly and easily through the bank a person uses, or directly through the "Diia" application.

"And the state encourages people to invest money in government bonds, and not in bank deposits, due to the fact that there is no income tax there. That is, income from government bonds is not taxed. And a person receives accordingly more net profit. And this can be a good start, because the minimum investment amount for government bonds is approximately 1000 UAH. That is, it is not such a cosmic sum, but at the same time, a person already has this self-reputation: "And I am already an investor, or I am already an investor, because 1000 UAH was invested in securities," emphasizes the advisor on personal and business finance.

Also, daily financial habits play an equally important role. According to the advisor on personal and business finance, the ability to save money is not an innate talent, but a skill that can be acquired if simple rules are followed.

Treat savings like a muscle that needs to be trained. Discipline is not an enemy, but a friend who helps achieve what you want. It works very well when people give their savings pleasant names, for example, "peace fund" or "financial magnet." This sounds simple, but it really motivates you not to stop.

Lena Shepel explains that first you need to define a specific financial goal, and then break it down into small steps, based on how much money you can save each month, or over what period of time you want to accumulate the amount. In addition, the expert advises creating a separate "jar" or "envelope" for each goal.

"It is very important, when you want to take money from there for something else, to ask yourself whether this purchase here and now is worth giving up my goal. Conditionally, if you want to take money from an envelope called "vacation in the Carpathians," is it worth it? Is a new dress, for example, here and now worth giving up a trip in the summer?" emphasized the advisor on personal and business finance.

Finally, the expert emphasized that "in the very name 'personal financial literacy,' the key word is 'personal.' And here it makes sense for each person to choose what will work for him or her." Some people will like financial challenges and envelopes, while others prefer tables and bank analytics. However, the main thing is to find a tool that works for you, and not to postpone taking care of your finances "from Monday" or from the new year.

Budget-friendly gifts: ideas to help you save money20.12.25, 19:00 • 97614 views