Celebrating Christmas without financial stress

Celebrating Christmas without financial stress




For the average person, Christmas is usually an extremely expensive period. Whether or not one is a Christian, there are usually many items to spend money on. This is probably because the New Year celebrations usually follow closely behind, and everyone, irrespective of religion, is wont to be involved.

And for many people, the result is that the months after Christmas are usually terrible, financially, that is. It is either they live out that period on borrowed funds or they live from hand to mouth, literally.

Sometimes, it is even difficult to get anyone to borrow money from since the spend-it-all-at-Christmas syndrome seems to affect many people yearly.

What is more, in some cases, quite a number of people find themselves in the first months of the New Year, labouring to pay off debts they incurred during the Christmas celebrations. Quite a tough time, one would say.

However, there is no need to end up in debts once the celebrations are over.

For the President, Institute of Credit Administrators, Mr. Chris Onalo, the need for planning cannot be overemphasised here. According to him, oftentimes, people do not consider obligations ahead, rather they prefer to always react and this does not help with personal financial management.

“We are in a country where people hardly save, otherwise, it is a time one can dip hands into personal savings and take care of the celebrations. But unfortunately, the saving culture of people is bad. People prefer to deal with the circumstances as they come,” he explains.

Enjoying good Christmas celebrations without necessarily running out of funds or borrowing, requires serious planning in advance and discipline to be able to implement the plan, Onalo says.

He notes that it is one thing to make financial plans and another to stick to them without succumbing to the urge to throw caution to the wind by spending outside one‘s budget. People must have their budgets and stick to them, he insists.

He adds that “If one knows that he will pay school fees and house rent in January, no matter the attractiveness of the Christmas period, he should stick to his plans and not let himself be carried away or made to spend the money budgeted for those areas on celebrations.”

The ICA boss also canvasses that people should tame their consumption patterns in line with their incomes.

“If you look far above your legitimate income, you will no longer be innocent because at that time, you will be forced to borrow to fund wants that could have been avoided. People need to have a sense of contentment. In all of that, one should limit oneself to one‘s financial power,” he adds.

According to the Chief Executive Officer, Newage Leasing Company Limited, Ms. Kemi Samuel, the Christmas season is known to be a period of massive spending and expenditure for both companies and individuals.

But rather than following prevailing spending culture, she notes that it will be financially wiser for individuals not to spend all their savings and bonuses.

“People should celebrate this season differently this year by not spending all their savings and bonuses but by spending only on things that are absolutely imperative,” Samuel adds.

For instance, she says people should avoid high maintenance purchases; buying things that cannot be conveniently maintained with your income and frivolous purchases.

Rather, she urges that people should take advantage of low prices in the stock market and invest now.

In her article tilted, “Five Ways to Curb Your Holiday Spending,” and published in www.singleparent.about.com, Ms. Jennifer Wolf says that, though there will always be things to spend money on during a celebration period, planning can make it less stressful financially.

“The very first thing you need to do is decide, upfront, how much money you can afford to spend on the holidays this year,” she notes.

According to Wolf, there are a lot of ways to temper the “gimmes,” which children can be so prone to during the holidays. “Consider setting a specific amount for each child, and sticking to it,” she says.

She adds, “Decide that you will limit the number of gifts to three items per child. Remember, there are always going to be people who will spend more on their kids, but attempting to “keep up with the Jones’ comes with a heavy price. Teach your children early that thoughtful gifts do not have to cost a lot of money, and what is most important is appreciating all that we have been given already.”

Yet another strategy, she says, is for one to always keep track of one‘s spending.

She recommends that parents should spend less money by using a Holiday Planning Worksheet to keep track of all the gifts they intend to buy or make, and record the amount of money they will spend on each person.

“This simple tool can help you stay within your spending budget and actually enjoy the months that follow the holidays,” Wolf says.

Apart from investing in stocks, another way to save money this period, Samuel says, is to lease household equipment rather than buy them, thereby, freeing up funds for investment.

“It is a win-win situation. While some people are only spending during Christmas and probably get so broke in the first quarter of 2011, you are enjoying both worlds because you delayed gratification; spending a part and investing a part,” she says.
Source:punchng.com