Don’t overspend December salary

By Ken Monyoncho

Christmas is six weeks away. To some it is an exciting time while to others it will be dreaded because what follows is a string of debts.

But it doesn’t have to be that way. Christmas, just like any other holiday, is a period that will demands financial discipline. Here are a few tips that will help you enjoy your Christmas:

Spend money that you have saved. There are those who may prefer to stay at home, others will prefer to travel upcountry, or go on a proper holiday.

All these plans require financing, so set aside some money that will go towards these expenses early in the year. A best practice in personal financial management is to spend only what you have saved.

If you were unable to save, it is never too late. You can start today for next year’s Christmas.

Don’t overspend your December salary. Most people are paid bonuses and salaries just before Christmas. This brings great temptation as one feels that they have a lot of money.

Getting paid in advance doesn’t do you any good. Imagine that every month for eleven months you are able to survive without salary advance and when suddenly more money is available you spend everything.

If you are not careful you will end up borrowing money in January before the month is over. To avert the situation, spend what you earn in November during the festive season.

Let your December salary take care of January needs. If you get a bonus, save it. Expenditure during the holiday period tend to be psychological in nature. One feels ‘good’ spending during that period because of the festivity.

However, you must also know that goods and services are expensive during December festivities. A good example is if you book a holiday before December 21, rates will be half those that you will pay after festivities. Why should you pay more for the a product, yet if you had paid earlier it would have cost you less?

Another good example is if you wanted to buy clothes for your family, buy them three or four months earlier instead of during the holiday. You will be able to save substantial amount of money.

The only way to beat unplanned for expenditures is to plan. At the beginning of next year, decide what you want to accomplish, including going for a holiday.

Work out the budget and start working towards achieving it. You will realize that it takes a little effort and discipline but will achieve extremely great results.

Last minute expenses will lead to borrowing either from friends, employers or credit cards.

—jkmonyoncho@kenmonyoncho.com