The excitement and joy of the holidays can frequently result in overspending and debt accumulation. How can you ensure that you stay inside your budget as January draws near and costs like kids’ school fees loom?
The holiday season necessitates spending money on meals, gifts, and outings, according to economic consultant Teddy Kaberuka. Nevertheless, he emphasized the value of prudent purchasing and spending.
“Avoid being wasteful, be thoughtful, and spend money on things that are worthwhile. Avoid going overboard because there will be more expenses after the holidays. Remember, January is just like every other month.
Kaberuka advises setting aside money for critical expenses, reviewing the list, and making purchases as needed.
He emphasized that the money saved by practicing effective money management can be put toward other endeavors.
“You need financial discipline to not be a burden to others requesting loans,” Kaberuka stated.
According to Kigali-based financial advisor Caroline Musuhukye, recipients of bonuses can use their December pay and save aside their bonus. If bonuses are not received, the individual should first review their January spending, put that money aside, and then spend what’s left over.
She clarified that having a specific target in mind for the money you save will enable you to achieve your overall financial objectives.
“If there’s no budget, there will be financial limitations. Make a list of the things you need to acquire and know what your priorities are, then follow it, Musuhukye advised.
She advises determining how much you can afford to spend and setting aside money to pay for all of your holiday-related costs.
To prevent a financial hangover in the New Year, Musuhukye advised establishing spending limitations for both gift-giving and other purchases.
“Seek ways to reduce your expenditures. Consider hosting a modest party or BBQ at home rather than going to an expensive hotel, bar, or restaurant.
Instead, think about taking a staycation, she advises. Get the family some enjoyable games, movies, and other things to do. In this manner, you can cut costs on lodging, transport.
Make purchases of necessities for your household. Avoid being influenced by your peers when shopping. For example, having a Christmas tree and decorations is not necessary just because everyone else is, according to Musinguzi.
He emphasizes that borrowing might be disastrous and advises against doing so in order to enjoy a memorable Christmas. “Don’t alter your behavior; only purchase necessities; don’t get carried away; don’t buy unnecessary items.”