It is no longer news that Nigerians spend more in December, compared with other months. But what is news is that a great number of families can save as much as 30 per cent from their expenses in the Yuletide month, if they are as disciplined as expected.
According to financial experts, saving and spending wisely, during the holiday season doesn’t have to be a total budget-buster. They say you have to follow the lead of the average American and try to trim your expenditure without sacrificing much of the holiday experience, especially because of the children.
RECALL
- Don’t get caught up in the spending cycle during the holidays
- Avoid falling prey for marketing campaigns in the spirit of Christmas
- Stretch each holiday Naira
- Cheaper entertainment, a focus on family, and a sensible spending plan is key
Experts’ advice
Before you visit the mall or organise a party, the finance coaches insist you must have a comprehensive plan to guide on the exact areas your money is going this holiday season. With that, you enjoy your holiday and welcome the New Year without panic. Some of their tips are:
try to arrange for a paying passenger, who is going in your direction, and if you are not driving, try to get a ride from a friend or religious worship member
Create a tight plan
The Managing Partner, Nesbet Consult, Dr. Alaba Olusemore, explains that you must set a tight budget with good intentions because an unrealistic one can do more harm than good.
If you don’t have a small room for a last-minute purchase, he says, you may end up very frustrated. “You might get so frustrated that you just toss your budget out of the window. To prevent this from happening, look over your numbers. Do you really need to spend N50,000 on wine, or can you cut back in order to allocate more money to other gifts instead? Don’t just pick numbers out of thin air, really think things over, to ensure that you make the right decisions,” he explained.
Track your expenses
Your plan is of no good if you don’t effectively track your expenses. It is better to keep a separate festive fund in a dedicated bank account as this makes it easier for you to separate holiday spending from regular, day-to-day expenses.
“Spreadsheets are also an excellent and accurate way to track your holiday expenditure. By establishing a budget and entering your real expenses, you can easily keep yourself on track. Just be sure to remain diligent,” he added.
Cut back on extras
Cutting back on those extras can have a big impact on your bottom line, at least 30 per cent. For example, if you buy soft drinks/wines worth N15,000 every month, that money could have paid for a few Christmas gifts, enough fuel to visit Grandma, or a generous donation to a charity of your choice. Before you make a splurge on a little treat or “extra” for yourself, be sure it’s really worth the price.
Use the ‘mini-party, gift exchange’ method
Instead of buying gifts for members of your large extended family, which may be so expensive, rather channel your resources into a mini-party where you will invite all asking them to come with special gifts each.
Instead of entertaining own family members alone, invite other anonymous beneficiaries, especially the less-privileged. The best part is that each family member can adopt any of the needy as they may decide to cater for their needs from there.
While your families will enjoy your meal, such an event will be more than the usual festival for the less privileged, as they will not forget the treat so soon.
Another expert, Mr. Tolulope Adewale, says, “Not only does the experience help relieve some of the stress and financial burden of exchanging gifts with every member of the family, it gives them a chance to talk about the importance of service and giving during the holidays, as they get to focus on someone less fortunate.”
Choose cheaper traditions
Traditions are what make the holidays so special, but they can be a financial burden. If your traditions include holiday travel, paying for a special attraction, or surprising your kids with extravagant gifts, you might find yourself going significantly over your budget in the name of family.
“Though, traditions are important and admirable, they are not expected to be expensive to be memorable. In fact, you might find that your kids prefer the cheap stuff to the grander gestures. Several activities and traditions are not expensive, or even free as you only need to look at the right place. By making cheaper events and traditions part of your celebration, you can save about 25 per cent and still have great fun and memories,” Adewale added.
Some of the favourite, cheap activities are touring neighborhood Christmas lights; watching a movie with hot chocolate at home; making Christmas crafts, baking together, and seeing a high school production, such as a play or choir performance, among others.
Beware of ‘Sales’
Holiday sales can be an epic opportunity to save money but you need to be very careful because all that glitters are not gold. Not all deals are created equal, and some may not even be truly discounted, as some stores keep prices the same but simply mark items with a “sale” sign.
Always compare prices in different shops before you purchase an item during a sale. Download the ShopSavvy app as it allows you to scan the bar code of any item and see prices at nearby stores and Internet retailers, to make sure you are getting the best deal.
“If you tend to fall victim to the festive atmosphere of a store and make unwise purchases, try shopping solely online. You can snag great deals and use coupon codes to get a lot more for your money,” Olusemore added.
