You need to have your expenditure in check , tomorrow is another day

This is the most tempting time of year as far as your finances are concerned. It’s a festive season where one can easily be lured into spending beyond their limits irrespective of their income. Those with relatively low income will be left yearning and wondering how to meet their expenses or may be tempted to borrow to meet their financial obligations.

It’s also the part of the year when we allow ourselves to look beyond the essentials and indulge ourselves in more pleasurable things like tastier food, beautiful clothes and having a wonderful time.

Although we have different income levels, anyone can still get the best out of this season. It’s all about budgeting, prioritising and knowing that there is a life to live after this season. January will soon be here, and the school fees song will be heard from every parent’s mouth. It makes no sense for one to exhaust their income within the short festive season and yearn financially shortly after.

According to Mr James Abola, a financial advisor and consultant with Akamai Global Financial Consultants Limited, before one spends, there should be a number of factors to consider; “Income for instance. How much do you earn and how do you earn it? You can’t spend what you don’t have. Prior planning is important. For example, you may see someone spending too much during this festive season when he/she has been putting aside some money over the past months,” he says.

Your financial obligations matter as well. “Single women and men with no children can spend freely without minding about fees in the next month or when they know that the following month is going to give them a strong backing financially.”

Mr Ron Nicholls, a financial advisor with Credit Union Australia on the website cua.com.au, writes that there are some simple tactics people can employ to help them spend more wisely during this festive season and below are some of the excerpts.

Christmas shopping should start with developing a budget, so that you know what funds you have available for shopping. The budget plan should also involve the people most close and directly going to be affected by it in some way for example, the husband, wife and children.

Make a list of what you want to buy. “People are less likely to impulse buy if they have written down what they want to purchase before they shop.”

Scout around for the best price. Don’t just accept the first price you find and try to work out a budget for each item on your list, including gifts. There are so many shops, places offering same products with reduced prices which can be a very good deal and another way to save.

Use credit card interest free periods properly. Since Uganda joined the world of credit cards and has seen their introduction in many major banks, they should be used wisely. “Most credit card interest rates are manageable especially when coupled with interest free periods like in the festive season, its better to make use of these than having hard cash which may be easier and tempting to spend.

Don’t buy on impulse. “Be realistic about what you can afford and what is essential, don’t get whatever is appealing to the eyes however unneeded it may be. You will end up spending so much on things which aren’t necessary. Nicholls says it is wise to have a strategy for managing debt before hitting the shops during the festive season or else it leaves you in debts. The festive season is just another time of the year. Don’t go out and spend as if there is no tomorrow.