Spending wisely ahead of Yuletide

The ‘wants’ of an average Nigerian during celebrations, especially at the end of the year, are overwhelming. This is because both individuals and organisations are either expected to distribute gifts to families, friends or clients, or embark on vacations, decorate homes, plan for children’s schools’ end-of-the-year parties, and prepare special delicacies for children.
With all these on your to-do list, there is the tendency to spend extravagantly, especially when there is cash in one’s possession.
To back that up, economists argue that human needs are insatiable and, often times, that makes our pockets to be overstretched, and if care is not taken, one might start the New Year with a pile of debt.
One of them, Mr. Ayodele Esho, a financial coach, thus gives some nuggets on how to keep upstream, as a deluge of financial demands assails this Yuletide season.
Esho, in his recipe, says it is always prudent to decide how much you can spend during the holiday. To him, looking at your bank account, you can make a firm holiday budget that you will be able to stick to, before embarking on any spending or purchases.
“Year in and out, Nigerians get it all wrong, by just spending money, hoping that after the holidays, they would manage the little leftover. In worst cases, some even forget to plan for children’s school fees, and before they realise it, they have run into debt and gone broke in the New Year, as children are sent home from school,” he said.
He urged people not to overlook the little ‘extras’, adding that they should ensure they include everything, from home decorations to the cost of an extra luggage when travelling, in their budgets for the year, or shortly before the long holiday, to avoid being cash-strapped in January, 2018.
“Individuals should try to make lists of what to do or buy with the tentative amount that may cater for those expenses in December. Go over the list and decide how much you can spend on each one. In case you do not have enough money to cover your holiday budget, you can go through it again and cut some things out,” he added.
If you can’t afford plastic bottled drinks, Esho says you can get glass-bottled drinks. This way, you would have indirectly reduced consumption and your expenses at the same time.
“It is always advisable to focus on the amount you will spend and not what you will buy. For business owners with clients, develop a gift list, but have it in mind that you don’t have to buy something for everyone,” he said.
All you need do during the holiday, according to him, is to set a limit, by taking money out of your bank account, and having it in mind that when you have exhausted the money, your festive spending is over. If you insist on using credit cards as a form of a short-term loan for the period, always use the card that offers the lowest interest rate.
Remember, it is always a good idea to monitor your credit card spending, just as you would do if you were writing a cheque, because it is easy, in the spirit of the holiday spending, to run around and not keep track.
It is always smart to put yourself on your shopping list, because there are things you would not have bought for yourself that you end up buying on impulse, probably for someone else.
In the flurry of the festive season, for instance, you might have gone to the supermarket to buy some hygiene products to cater for your guests, friends and loved ones that will come visiting, but you can also buy a deodorant for yourself, so that you will not start making another list after they have all gone back to their destinations.
In case you want to give someone a gift, but don’t have the money, you need not stress yourself out. You can do small, intangible things for that person, which may go a long way; you may see it as something small, but that person might appreciate it. If you are cooking a rare or special delicacy for your family, such as your native soup, you may dish out some for a neighbour, who is not so buoyant. After all, the season is all about sharing. In the quest for saving some money during the Yuletide, try to say no to lustful wants and desires.