Spending Tips for the Holidays

Spending tips for the holidays

It’s Christmas, the season to be jolly. I particularly love Christmas because it is a season to give and receive love. I love the Christmas lights on streets like Ajose Adeogun, Alfred Rewane and Mobolaji Bank Anthony, the lights on buildings like the Civic Centre. I love the shopping buzz in Osu and Sandton and the exotic food in Nairobi.  I love the parties, concerts, balls, carol services and of course the gifts and food. However, I also know that Christmas is a season of spend, spend, spend. We feel compelled to buy expensive gifts, eat out at restaurants, buy expensive clothes, jewelry etc. Consequently, many find that after the holidays they have incurred debt and have to survive on a very stringent budget the following month. In some cases, individuals have no choice but to borrow more money to survive in January and this has a ripple effect on the subsequent months.  According to David Bach “the problem is not how much you earn but how much you spend”.

Accordingly I have decided to provide spending tips for the holidays. They are as follows:

1. If you don’t have the cash to get it, don’t buy it: A good way to prevent overspending is to use cash only. A recent study showed that the credit card user spends about 12 to 18% more when using a credit or debit card. Furthermore, if this pay check cannot accommodate it then don’t get it. Essentially, If you don’t have the cash to get it, then don’t buy it.
2. Create a budget and Stick to it: It is important to create a budget for the season. How much do you have available to spend this holiday? Write it down. Based on the amount available to spend, what would you like to spend the money on? Write it down. It is important to determine, ahead of time, how much you have to spend on shopping and all festive activities. It is also important to stick to your budget. This requires a lot of discipline. According to Warren Buffett “do not save what is left after spending, but spend what is left after saving”.
3. Get creative: This season lets be more creative with our gifts. Let us give creative gifts and not necessarily expensive gifts. It’s the thought that counts and not the amount spent on a gift. According to Mother Theresa “It is not how much we give but how much love we put into giving”.  An example of a creative gift is a family calendar. Every year, friend of mine selects pictures of family members and creates a calendar with the pictures. She prints these out and gives the calendars to family members. Another creative gift idea is to give out cards with pictures printed on the cards. Every year, a family friend in America, sends my dad a Christmas card with a picture of his family printed on the card. This is especially good for long distance family members and friends.
4. Buy meaningful gifts: This season buy a meaningful gift that would make a lasting impact in the receivers’ life. For instance you can give a book as a present or invest in a mutual fund on behalf of someone. Furthermore, if you are aware someone struggles with fear or bad eating habits, buy a book that would help the person overcome their fear or eating habits. I recently read an article about a story in the book Rich Dad, Poor Dad about a wealthy woman whose home was burglarized. The thieves stole the typical valuable items like jewelry etc. However, they failed to take her most valuable items which were her books. The thieves failed to realize that the books were what educated her on how to get wealthy.
5. Give: There is a fulfillment that comes with giving that money cannot buy. That is why the likes of Bill Gates and Warren Buffet are giving out all the money they have worked hard for in order to find fulfillment. I am not implying that you should give out all your money, however this season do not give gifts to only family members, friends or loved ones for it is more rewarding to give a gift to someone that cannot repay you.  Wouldn't it be a wonderful idea to visit an orphanage and give gifts to children who would not ordinarily receive gifts? Wouldn't it be nice to visit a pediatric ward to give gifts to kids on Christmas morning? Wouldn't it light up your heart to give a single mother money towards the school fees of her child or children or to contribute towards the rent for a widow? Put a smile on someone’s face this season by giving.
6. Spend quality time with your kids/family: Most times we feel obliged to buy our kids expensive gifts during the holidays, after all what and who are we working for? The good news is that you do not have to buy expensive gifts like branded clothes, gadgets etc for your kids. What really matters most is spending quality time with your kids. According to Kahlil Gibran “You give but little when you give of your possessions. It is when you give of yourself that you truly give”.  Spend quality time with your loved ones. Bake cupcakes with your kids, sing Christmas carols. Watch a movie in bed with your spouse. Cook a nice meal and have candle light dinner at home. What really matters most is the quality time you spend with your family.

As the year rounds up and a new year approaches it is important to have a vision for your finances. One of my mentors Terri Savelle Foy recently mentioned in a magazine that she saved $38,600 dollars in 5 months when previously it took her 5 years to save $1,000. She says it’s all because she and her husband had a clear, compelling vision to get a new house within 5 months and they were determined to have the money needed on time. So this season I implore you to  get inspired to get out of debt, get a vision for where you want to be financially next year, write it down and set some goals towards achieving them. It is important to save and invest money and prepare financially to follow your dreams and goals. It is also important to be a blessing to someone.  The Bible says “the wise man saves for the future, but the foolish man spends whatever he gets”.

Have a Merry Christmas and a happy financially blessed new year.