Have little to spend this Christmas? Here is how to stretch that coin

This is also the time many people schedule their engagements, weddings, dowry payments and other special occasions that often take a lot of money to plan and execute.

But even then, wants will always exceed the pocket size of the average spender. It is therefore absolutely crucial to plan your spending appropriately, especially during this Christmas season when shopping activities hit a frenzy.

This year, just like 2020, was punctuated by lockdowns, curfews, job losses and salary cuts owing to the continuing effects of the Covid-19 pandemic on the economy. People’s purses have shrunk and their spending power reduced.

Tantalising deals

Yet retailers, online outlets, airlines, hotels, tour firms and other service providers have taken their marketing campaigns to a new high, splashing billboards, posters, television, radio and social media with tantalising deals and offers to attract customers.

But don’t fall into this trap and spend more than you had planned or can afford lest you fall into a debt trap, warns financial expert Simon Gathecah.

Individuals, he says, have a tendency to want to show off their financial muscle during Christmas and New Year festivities with extravagant spending that often leaves them in a dire financial situation when the celebrations are over.

To go through this year’s festivities with your spending plan intact, he advises, you need to make a budget, stick to it and ensure that you first pay for essentials before spending your money on other needs.

“The most important rule is to first pay for or set aside money for very important needs such as rent, school fees and food. Make sure you keep the budget for non-essentials such as travel reserved,” he says.

“Also, ensure you have reserved sufficient money for January food and if you have insurance to renew and other investments, pay up.”

Meanwhile, for many individuals, this is not their first Christmas and they may have previously spent excessively during the festivities and come to regret it.

Mr Gathecah cautions people to learn from their mistakes in previous celebrations to avoid repeating them.

But just as important, he adds, is understanding that lack of sufficient money to spend during the festivities should not necessarily mean a bad Christmas.

“Learn from your past Christmas pitfalls and do better this time. Also learn that it is okay not to have money to spend. One can create merry moments with the least of spending when planned properly,” he says.

Jonathan Ngulamu, a communications consultant, advises individuals to steer clear of competition or peer-pressure spending that often leaves them buying more or what they don’t need.

“Holidays will come and go, but needs will always be there. Therefore, avoid making impromptu plans or purchases that you never had just because your friend, colleague or relative is also making them,” Mr Ngulamu says.

Key spending takeaways this Christmas

First spend on essentials

You have a lot of needs and wants this month including doing that wedding, attending that birthday party and taking that fancy holiday trip yet you don’t have enough money for all of them.

But worry not, be clever and instead start by spending on the most important needs like food, water, rent and electricity before you put the remaining resources into those non-essential activities.

Should your money run out, you can always take that trip or do that wedding later.

Shop at optimal periods

You know Christmas happens every year without fail. Therefore, plan early and buy what you will need during the festivities when the prices are still low.

Instead of buying a goat for Sh11,000 during Christmas, you can buy it for much less months earlier if possible to lower your costs.

Make a shopping list

You have many things you need to buy and have no idea which ones to buy first.

But your money is finite, which makes it necessary to make a shopping list of things you have to buy. Start by buying those that are important, such as food supplies, and make sure to stick to the shopping list.

This helps you avoid impulse purchasing that would make you shop beyond your budget. Create a shopping schedule.

You don’t have to rush to the mall to buy that amazing phone or outfit that you have just seen on television.

Instead, set aside the days you will be going shopping to avoid unnecessary shopping trips that will inevitably inflate your spending.

Buy in bulk

Many sellers lower their product prices when you shop in bulk.

This Christmas, make a habit of buying goods in large quantities to enjoy these lower prices. In any case, the stock can come in handy in January when you have exhausted all your money this month.

Compare prices

Just because you have seen a compelling advertisement doesn’t mean that product is the best or the most affordable on the market.

Instead, with many goods or service providers offering enticing deals, take your time to analyse similar products, compare their prices and only choose those that present the best value for your money.

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