Festive season around the corner, spend and behave wisely

Today marks the end of November, the 11th month of the calendar year. Come tomorrow, it will be December, the month many people spend like crazy regardless of the economic environment.

For many Malawians, 2023 has been a harsh one economically as they endured the rising cost of living where inflation and rise in prices of goods and services at 29 percent, prices rose at a faster rate. It has not been easy to make ends meet.

During the year, foreign exchange scarcity which led to shortages of essential commodities such as fuel, medical drugs and fertiliser, continued to haunt Malawians. Simply put, it has been a tough year yet again.

As if the economic yoke was not heavy enough, on November 9 2023, the Reserve Bank of Malawi implemented a 44 percent kwacha devaluation that left the local unit trading at K1 700 from K1 180 in authorised dealer banks in a desperate bid to re-align the unit and narrow the widening gap between official rates and those on the parallel market.

Expectedly, the development triggered reciprocal price increases that were worsened by a 40-plus percent increase in prices of diesel and petrol at the pump as well as electricity.

Malawians were already struggling to survive and the currency re-alignment further complicated life.

That said, December is here and life must go on. We still have to celebrate the birth of Jesus Christ on December 25, Christmas Day. Few days later on January 1, the New Year 2024 will be ushered in. These are traditional milestones that have to be celebrated regardless of the economic environment.

But the twin Christmas and New Year’s Day festivities have often taken people off balance in terms of finances after getting carried away with promotions in shops as well as merry-making. I must say that there is nothing wrong with shopping or making merry as long as you can afford and save some “reserves” for the rainy day. If you can afford it, spoil yourself after a year of sweat and tears, osamazimana.

However, in whatever manner you spend your money, avoid falling into the trap of impulse-buying where you pick items in a shop out of “peer” pressure or indeed unnecessary debts.

Impulse-buying can be avoided by drawing a shopping list and sticking to it when you go out shopping. The shopping list may sound “old school”, but it goes a long way to help one manage finances. During outings to shopping centres, you should also pay “a blind eye” to the ‘sale’ signs as they are traps to drill holes in your pockets.

It is a fact that this year has been harsh, but it remains to be seen how this will impact on spending behaviours.

But regardless of the circumstances, one thing that is clear is that people will spend and you will be one of them. My advice is that you should always have the discipline to spend within your means. The rule of thumb is simple; if you cannot afford it, avoid!

At all cost, avoid living large on borrowed money, especially during what former Attorney General Chikosa Mozesi Silungwe, annually describes on his Facebook page as “10 days of madness” from around December 21 to January 1 when people spend like they are possessed only to seek soft loans from January 2.

Spend wisely and avoid the temptation to get carried away. Do not spend money like you have been cast with a spell or as if the money is perishable and will go bad.