Your personal finance

Spend as you want this festive season but don’t come back crying!

 

With Christmas barely a week away and the end of the year just ahead, now is the time to make sure that you have a solid grasp of your finances. Before buying special gifts or making big purchases for the household, listen to me. I want to help you have healthy finances through-out the holiday season—and after.

Here is my free advice:

Make a budget and stick to it: Most people know how much money they make, but find it hard to keep track of where their money is going or how much their debts cost them every year. Taking some time now to plan your holiday spending, can help you avoid regretting your expenditure bill in January.  Having a budget also helps you see where you can cut expenses to have more money available for what really matters to you like children’s school fees in the coming year. By saving and spending wisely, your holiday season does not have to be a total budget-buster. Follow the lead of the average Malawian and try trimming your expenditures without sacrificing any of the holiday experience. The way you create your budget is up to you, but one thing is for sure: you need one. Create yours before the season hits full steam, and revisit it often to make sure you are spending within your means.

Choose cheaper traditions: Traditions are what make the holidays so special, but they can be a financial burden. If your traditions include holiday travel or surprising your kids with extravagant gifts, you might find yourself going significantly over budget in the name of family. While traditions are important and admirable, they don’t have to be expensive to be memorable. In fact, you might find that your kids and parents prefer the cheap stuff to the grander gestures. So many activities and traditions are inexpensive, or even free—you just have to know where to look. By making cheaper events and traditions part of your celebration, you can save money without skimping on the festivities and memories. Some of the cheap activities include watching movies as a family, playing cards and bawo, cooking together. Teach your kids that traditions are not about what you spend, but the time you spend together.

Embrace potluck: Buying food for say 30 people is seriously expensive. So during the Christmas or New Year day, if you are hosting an event, embrace the idea of potluck assignments.  Let everyone know you are going to make the main dish, but that you would appreciate help on sides, appetisers, desserts, and drinks—let everybody bring the drink they will be having. Simply send out an email or WhatsApp message a few weeks in advance letting everyone know what their assignments are to ensure you don’t end up with five vegetable trays and no dessert.

Take care around sales: Holiday sales can be an epic opportunity to save money—but be careful. Not all deals are created equal, and some may not even be truly discounted, as some stores keep prices the same but simply mark items with a “sale” sign. Always compare shops before you purchase an item during a sale. Of course, you never save money by spending, no matter how significant the discount. Sales are great, but they do not mean much if the money is not in your budget. If necessary, bring a printout of your budget so you can check your spending in real-time and avoid being swayed by a screaming deal.

Know when to stop: When your shopping list is finished and you have checked it twice, it’s time to stop shopping. Know when you are finished, and avoid stopping by the mall “just to see what they have”—this can lead to making poorly planned purchases and blowing your budget. By planning purchases and stopping when you are done, you can be spared that holiday hangover come January.

Lastly, you do not have to go into debt to have a happy and memorable holiday season. Keeping your finances under control can help you keep the other challenging aspects of the holidays under control as well. If you are not stressed out, you are less likely to overeat or lose patience with your relatives. And if you can keep calm when everybody about you is going mad, your happy mood will perhaps be the best gift you bring to any gathering this holiday season. Remember that Christmas is a time for enjoying and being thankful to your family and friends, and this should not be in sacrifice of your saving goals.

Heed my advice or otherwise don’t come back crying in January! Blessed festive season to you and yours! n

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