EMBRACING FINANCIALLY FIT FESTIVITES

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EMBRACING FINANCIALLY FIT FESTIVITES

Quote of the Week:

“Winners take time to relish their work, knowing that scaling the mountain is what makes the view from the top so exhilarating.” Denis Waitley.

It is beginning to look a lot like Christmas. Many shopping malls and gift shops have already ‘decked their halls’ with all things red and shiny - since red is the colour of Christmas. Christmas brings with it a lot of joy, excitement and evokes a fierce spirit of spending - whether it is to have a good time - with friends, family or even colleagues at work. Notably, the season of gift-giving and fellowship too often creates the spirit of giving far beyond what one can realistically afford. debt

However, lest we are mistaken, inflation does not stop for Christmas. In the last twelve months, our nation has had a lot of economic challenges, and even as we approach Christmas, they seem to be getting bigger and bigger. That does not mean that we should all abandon the Christmas spirit and become like the proverbial Scrooge. On the contrary, it provokes us to uphold money management tenets even as we enjoy the festivities. Whether it's planning for Christmas, or a big party to celebrate the dawn of a new year, now is the right time to get one’s finances in order, so as to avoid debt and regret that can lead to post holiday blues. Here are a few ways to stay on track:

1. Review last year's expenses
The best starting point to determine what you can afford this holiday season is to review what you spent last year. Be honest and thorough, and remember to include items such as holiday cards, postage, gifts, food, travel, and even special occasion clothing. Purchases such as gifts, children's treats, family expenditure such as traveling up-country, entertainment for children while on holiday from school, and decorations should be included as well. Once you have calculated your holiday expenses from the past year, the next step is to determine whether it was excessive or appropriate. This will enable you to get a rough idea of what this year’s allocation should look like. Factoring in inflation and the current prices of commodities will give you your budget figure.

2. Create expectations and family Buy-In to budget
You may have your budget in place, but unless everyone is willing to stick to it, then the target is useless. The key is to communicate with family members and begin planning now to avoid last-minute rushes and over-spending. Minimal lifestyle changes can help to save money that can be earmarked for the holidays. Children can be encouraged to contribute to a coin jar and learn about the value of saving as well. Talk to your family and friends to let them know what you can afford to spend this year. The truth is no one wants to see their family or friends struggle financially or receive a gift purchased on credit. You may be surprised to learn that many of your friends and family also want to cut back on their spending. By considering everything you want to spend money on over the holidays ahead of time you are able to plan what you can afford to spend and when you’ll have the money to do it.

3. Save for the season.
Certainly, it may seem a little too late to start saving for Christmas; after all, it’s already here. The reality is that a majority of Kenyans might not have been in a position to keep something aside for the holidays during the year due to all the financial constraints that most people have been subjected to. It’s not easy to find spare cash in the middle of an economic crisis. The best solution in this case would be to budget for essential expenses and to cut back on the non-essentials. Try and draw up a budget for the next two weeks and cut out any traces of non-essential spending. If you do that, you may be able to find some spare cash for Christmas.

4. Make a list and stick to it.
When planning on gift ideas for your loved ones, remember to make a list and stick to it. Record everyone on your gift-giving list and be sure to check it at least twice. Set recommended amounts and then keep track of spending along the way, while avoiding any forms of last minute temptations. Remember, it really is the thought that counts! Another important list is the holiday meal plan and other expenses that pertain to the actual day. Finalize your holiday meal plan early and stock up on the items you need when they are on sale. While shopping for the items, try as many different places as possible to find the best price. A good way to save money on shopping is to redeem loyalty-card points for items in those supermarkets that offer that facility.

Conclusion:
As we celebrate the festivities, let us not forget that January comes right after the festive season. As much fun as it may be to ‘ride in a one horse open sleigh’, turn on the Christmas lights, and celebrate with friends and family, we must not throw caution to the wind and over-spend. Keep in mind that Santa Claus will not take our financial obligations with him back to the North Pole once the Christmas season winds up.
Also, be careful not to let budgets and financial planning put your emotions into the doldrums; rather, use the experience as a means to financial liberation. Having a budget can actually free you from some of the stress that comes with the holidays by giving you the power to be in control of your finances. Avoiding excessive debt and overspending is the best holiday gift to one-self long after the Christmas cheers and celebrations end. The holiday season is full of low-cost/no-cost activities and events. Make time in your calendar to relax with family and friends and be filled with the magic of the festive season. This will put a smile on your face and will not break your budget.

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