This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur contributors are their own.

The end of the year is approaching and with it a series of celebrations, but also expenses. This time is characterized by great economic dynamism derived from the extra income that a good part of Latinos receive, through the Christmas bonus, bonuses, vouchers, among other employment benefits .

However, those without education or efficient financial instruments are likely to turn this extra income into debt rather than savings. Data from the National Institute of Statistics and Geography (INEGI) reveal that 56.9% of the country’s households (20.9 million people) have at least some type of debt.

“Promoting financial education and the use of instruments that encourage savings and good management of personal finances are key strategies during this time, thus establishing the route to adopt good financial habits and cushioning the so-called ‘costs in January’ , since this has been avoided since December ”, affirms Modesto Gutiérrez, president and Cofounder of Miio , the first Telcobank in Mexico and Latin America.

According to a survey conducted by Tiendeo in 2020, Mexicans spent an average of 4,500 pesos just at Christmas: they spend 51% of that spending on dinner and 43% on gifts.

The president of Miio points out that reaching the end of the year without new debts is possible. Here 7 tips to achieve it:

1. Plan before you spend. Calculate how much you plan to spend this season; consider all your commitments in a list. Don’t forget Christmas gifts, dinner, or decorations. Before starting with the purchases, check which expenses are necessary and which you can skip. Then establish a viable budget and stick to it. Consider your fixed expenses like rent, food, and utility payments.

2. Adjust your budget. Once you have established a budget, keep a rigorous record of the expenses you are making, including the so-called ‘ant expenses’. There are many ways to do it, a document in Excel, in an app, with your financial institution or even with a paper and a pen.

3. Keep an eye on your bank account and your debit / credit card. Keep track of how much you are spending through your cards, be it debit or credit. The purpose is that you do not have any leaks. If you have pending payments, consider paying them off with your extra income from December.

4. If you don’t have a card or don’t have access to credit… buy it. Today it is much more accessible to access financial products or services thanks to innovative companies such as Telcobanks, which also provide financial tools such as savings instruments and telephone services to support the financial management of their users.

5. Beware of monthly payments! Buying for months, even if they are interest-free, can be a good option, but these purchases can exceed people’s ability to pay if they don’t have good financial management, which has the potential to turn them into future debt.

6. Use your Christmas bonus wisely. Having money in your hands can be tempting to spend, but if you have already done the previous steps you can make a smart use and allocate at least 10% of this income for savings.

7. Open a savings account. A savings account is a financial instrument that can get you out of more than one trouble. Take advantage of your additional income from December to start with an account, look for one that allows you to save according to your possibilities, but also offers guarantees so that your money does not lose value.