December is no different from any other month of the year. Bonuses should be used to pay debts and other expenditures. Getting into debt to buy presents or take a holiday over the festive season can leave you paying far more than you think. It is therefore important to cultivate some good Christmas spending habits.
Consumers should prepare their budgets for the festive season beforehand. In those budgets, all traditional expenses should be included. If the government is wise enough to consult for the 2013 budget as early as August 2012 and announce it in November 2012, why should consumers not have a budget at all?
It is important for consumers to reflect on the previous year, and think about whether their financial situation has improved or worsened.
Shop around
When shopping, consumers should avoid waiting until the last minute because they will have little time to visit more than one store, or compare prices and take advantage of sales.
Don’t just buy because you have come across something and you have money in your purse or wallet. In fact, it is advisable not to carry around too much money but keep it in your bank account or a safe place at home.
Always have a shopping list so you can eliminate what you have bought from the master budget. Prices usually rise during this season, partly because of the shift in the fundamental behaviour of the market forces and also due to the Zimdollar hangover.
It is therefore important for families to substitute purchased products or services by making them at home, where possible. Avoid buying durable products during this season but rather wait for January.
Prices for furniture, motor vehicles and other durables increase during the festive season but fall down significantly in January. Every consumer should avoid getting sucked into advertising and marketing deals that are designed to manipulate consumers into spending more over the Christmas period.
Save for Xmas
The South African Reserve Bank has changed their Rand notes. There is a risk of fake notes being circulated in the country, especially during this festive season. It is therefore important to buy your Rand from scrupulous sources.
Although this advice might be coming too late, it is a good idea to save for Christmas throughout the year. You can open a savings account that you contribute to on a monthly basis in order to avoid overstretching your festive salary.
The important thing to note this season is: you don’t have to spend a lot to have a meaningful Christmas celebration. The festive season can do some serious damage to your wallet and it is important to have a concrete spending plan. It is important to spend holidays on what really counts: quality time with loved ones, fellowshipping at your church or voluntary work. Christmas is actually a time when we should be thinking about saving rather than spending.
What do you think?
Do your spending habits change at Christmas? Is it a time to spend or save?
Email: editor@thezimbabwean.co.uk
Facebook: https://www.thezimbabwean.co.uk/#facebook
Twitter: https://twitter.com/thezimbabwean
Sms: +27 79 570 9663, +263 772 492527
Post published in: Business