The month of January is usually loaded with financial responsibilities, especially for parents. Hence, you must spend wisely as you celebrate this season, Okechukwu Nnodim writes
If you spend your pay cheque as soon as you get it, or you find yourself spending and spending until you have no money left, then it is possible for you to spend excessively during the Christmas and New Year celebrations. Individuals, who constantly borrow money from parents, siblings, or friends and find it tough to depend on what they earn, need to learn how to be prudent, especially during the Yuletide. It is normal to spend much money this season, but make sure you have enough to fall on by next month.
This is because the month of January comes with lots of financial obligations. Rents, school fees and different types of bills are settled in January, so as you go celebrating and spending, you must realise the responsibilities that await you in the coming month. This piece is not aimed at discouraging celebrations this Yuletide, but it is to call to your remembrance, monetary demands that may need your attention after the festivities are over. Below are simple tips on how to curb excessive spending this season, according to experts:
Firstly, admit you spend too much
Before you can trim your expenses this season, you must admit that you've spent so much in the past. Does spending so much make you feel good? Do you see something and think 'I must have it now'? Do you take pleasure in having money to spend on what you like? You may find this pleasurable; however, you must realise that shopping can be like a drug, it makes you feel good, but it's addictive. The bad effects are debt, having to borrow from friends, and maybe not even paying them back because you can't. There is also buyer's remorse where you feel guilty about your spending and a feeling of not being able to control yourself. So this season, avoid unnecessary spending and you will be glad you did. When you've been able to caution yourself on spending, make a promise to yourself, your friends, and your family that you will change. Tell them that you will stop overspending and that you will be careful with your money from now on.
Make a savings target this season
While others go about spending recklessly, tell yourself that you will save money during the Yuletide. Make a goal of how much you actually want to save. This could be from N10,000 to maybe N100,000. It can be anything you want it to be. But you've got to remember. You need to stick to your promise. Do not allow the activities of the season interfere with your resolve. It is good to save, so ensure that you save this season.
Spend only on what you need
This may be tough to many individuals, but it is possible. It only requires discipline and a strong will to save this season. It doesn't mean that you won't buy simple items that are not included in your budget, but the idea is that you must stick to your plan on most occasions. Never allow pressure from family and friends to make you purchase an expensive item that is against your wish this season. Remember, many things will call for attention, but it is in your hands to say no to those that you can comfortably do without. Experts say you shouldn't make spontaneous purchases when out on a casual day.
Do you really need to buy that bag of chocolate when there are plenty of chocolate at home? Do you really need to buy that videogame now instead of waiting for it to get a little bit cheaper? When thinking about buying something, ask yourself whether you actually need it, if you're going to use it, if you just want it, or if it's just going to sit in your closet after one or no use made out of it, experts say. If you just want it but won't use it much, what's the point of buying it? If you need it and you're going to use it, then buy it. If you can get a cheaper version of it then try to.
Itemise purchases/expenses made
According to financial experts, it is advisable that you make a diary of what you are buying and expenses you have paid for. Whether it's N3,000 on fuel for your car, or just N300 for a cup of coffee, write it down. It will help make you more aware of what you are spending. They note that usually, you just end up spending your money without really knowing what you are doing with it. But with a purchase diary, you can raise your awareness. This will guide you before you make an unneeded purchase as it has the ability to make you stop and think about it. Avoid cheating your purchase diary by not writing things you bought but you feel you shouldn't have. This is because cheating your purchase diary will not help you for your long-term savings plan. Be honest with yourself.
Avoid travelling with much cash
Carrying much cash in your wallet might make you fall easily for the temptation of unnecessary spending. Don't keep all your money together in your purse/wallet at one time, whatever you do. Experts say it is a common habit for a lot of people to always take their wallet or purse with them whenever they go out anywhere, even if it's just for a walk, just in case they pass a shop. You must avoid this during the Yuletide, otherwise you will return home with an empty purse. If you're out with all your money in your wallet, you will be tempted to spend all of it at once. Not a good thing. Take as little money as possible with you. Sometimes it helps just to take a small purse which has change rather than notes. Sometimes, there might be a situation where you need money, so take a little bit with you. Understand that the essence of the season is not purely to spend all you've worked for in the past months. Be happy with your family and friends, but spend shrewdly.
