The festive season is fast approaching and many people around the world are eagerly expecting to have moments of fun with their family, friends and loved ones.
It is also an annual ritual that most people experience financial crises after the festive season is over.
For this reason, several jokes have been made about January, that it is the ‘longest month’ in every year.
However, here are some important tips which when followed, can inform your wise spending this festive period, ensuring that you are financially stable till January ending.
1. Plan your shopping ahead: One thing most people fail to do is to plan for their shopping ahead. They are addicted to impulse buying and this makes them spend much more than they should.
Planning your shopping helps you to have full control on your budget so you don’t go overboard. It also helps you beat high prices which become the norm during Christmas.
Planning your shopping ahead also helps to avoid buying things that you don’t need.
2. Separate November’s income from December’s: The usual thing has always been like this – the previous month’s salary is what is spent for the following month.
For example, October’s salary is what is used in November, and November used in December. However when it gets to Christmas, people would want to spend their November and December salaries together in the festive season.
They forget that December salaries are supposed to be spent in January. Therefore, to avoid financial hitches in January, spend only November’s salary in December and save December salary for January.
3. Be honest with your spouse about your financial situation: Most men, especially, would want to go all out to impress their spouses even when there are clear indications that that would lead them into monetary trouble.
This is the time to be honest with your wife. Tell her how much you would be able to spend on shoes, clothes and foodstuff for her and the children. A supportive wife would always understand because if you get broke in January, you both are in it together.
4. Your end of year bonus: it is not all the time or rather not all institutions pay end of year bonus. Yet many of the people who get this bonus are ignorant of the purpose an end of year bonus is to serve.
They therefore make the mistake of spending their November and December salaries together with the bonus. Bonuses, however would serve a better purpose in January when saved.
Remember most companies do lots of business in December, including payment of salaries and bonuses on time. Therefore, cash flow in January is usually slow. Think again and save your bonus!
5. Limit visits to in-laws and other places where you would be tempted to spend lavishly: While many people view Christmas as the time to offer gift, it is also proper that you check what gifts you offer and to whom.
Some in-laws are noted for making wild demands in season like this. This is time to limit your visits to such in-laws. If you were going there up to five times before January, this is the time to limit it to 2 times. Most people have tried this strategy and it worked for them.
6. Don’t walk around in town with ATM: You need not be told the repercussion of going everywhere with your ATM.
Make the wise decisions now to help you remain financially sound from this time right to January.
YEN is building a platform where Ghanaians can share local news and own experiences with each other. Witnessing an incident?
Have national and human interest issues to discuss? Know someone who is extremely talented and needs recognition?
Your stories and photos are always welcome. Send us a message via YEN’s official Facebook page.