FINANCIALLY FESTIVE.
*I wrote this a while back, hence it might not be time-sensitive, nonetheless, enjoy.
I did grow up in an Islamic home. One that had a lot of incense and spices. This however does not mean that I do not understand the holiday cheer that is ushered in every year once the calendar turns to December or sometimes November. The air around us changes, suddenly everyone is grinning from ear to ear and the hugs, ooh these get a little bit tighter. This year though, the fist bump will do. Walking into supermarkets and malls in Nairobi it’s evident that the holiday season is upon us and not even the pandemic could steal this from us. From one shop to another at a local mall, It was clear that customers were being lured by sales by retailers. From Christmas decorations to and little gifts, the buy one gets one free message was crystal clear. Even Uber has a promo code, it’s really the most wonderful time of the year. I really wanted to get myself the heels I really did, but it wasn’t on my budget even though the sale was to die for.
For the few years that I’ve earned, I have spent my money like a maniac and it was only with the pandemic as a wake-up call do I decide to save. The year that has been a learning curve and because of it, I have managed to not only set up my emergency fund but also started funding it. This has not been easy but this is a story for another day. Yes, I’m actively trying to save towards a certain goal but this does not mean that I’m cancelling the festive season quite the contrary. I’m allowing myself to have just as much fun or more during this period. I’m going to be financially festive. It is estimated that on average Kenyans spent close to 10,000 shillings more during this festive season than they would in other months. The fact that in January school children have to either resume or join school does not make it easier on anyone. The expenditure for these two months is ridiculously expensive. With the Covid-19 pandemic this year, the situation is expected to worsen as the pandemic did not only affect our health but also businesses and income-generating activities as well.
This year, Kenyans are expected to spend less during the festive season mainly because of the pandemic and its effects. Since all of us are still trying to recover in this new normal, it would be paramount to set the record straight from the onset. I have a few tips and tricks that will help me and you save a coin or two this festive season. Remember financial responsibility starts with me, or in this case us.
Tip 1) Set a budget
They say the best time to plant a tree (read: start saving for Christmas) is yesterday, but if you didn’t have this as a savings goal for 2019 and you’re now wondering how on earth you’re going to afford all the upcoming expenses without touching your emergency savings or leaning into credit card debt — the answer is to start a Christmas budget now.
Think about all the things you may need to spend soon (e.g. presents, decorations, food) and set a dollar limit on how much you’re allowed to spend on each category. This might mean you will have to get creative for some categories (more tips below), but if you stick to your limit you might even find yourself having fun with the challenge! If anything, your 2020 new year self will definitely thank you for the extra moolah.
Bonus financial hack for future you — before next year’s festive season, try playing the “No Spend November” money challenge, where you and your friends don’t purchase anything outside the essentials (bills/groceries) so you can accumulate as much savings as possible in preparation for December!
Tip 2) Saving money with gifts
Most people would agree this is where the bulk of their December spending goes so we compiled numerous ideas to help you stay on budget for this category:
Playing Secret Santa / Kris Kringle — If you have a large group of friends who are celebrating Christmas together, you can all randomly draw a name and only buy 1 gift for your assigned person. Likewise, you will only receive 1 gift from your Secret Santa. Not only is it super fun to guess who bought your gift, but you also save a lot of money by not having to gift everyone.
Joint experience — If you and a partner are used to spending lavishly on gifts for each other, why not try a joint experience instead? For example, you could book a couples massage or watch a movie in gold class. Sometimes, quality time together is worth more than a person can buy.
Regifting / Upcycling — Do you have an almost brand new item that you only touched once (when you bought it) but you know your friend would absolutely love? If your friends are interested, try a year of exchanging upcycled gifts instead of purchasing new ones. In this day and age of consumerism, we forget how many treasures are hidden right here in our homes.
No gift — As climate change becomes increasingly evident, more and more people are opting for no gifts during Christmas to reduce their carbon footprint on the Earth. We can’t deny this is equally wallet-friendly as it is eco-friendly and it could be the option you and your loved ones are looking for.
Tip 3. Don’t buy on credit
Tala and Branch are great lifesavers, trust me, been there done that, the only pinch comes in when we have to pay back the loans, not fun right? A simple tip to avoid the January pinch that may come too late for some is to only spend what you have in the first place. It seems simple enough but with the expectations thrust upon us by the corporate Christmas campaigns and their tempting offers to buy things on credit many of us can fall into these dangerous debt traps that can seriously harm our finances in the long run. Living within your means, even at Christmas time, is the first step to banishing the January blues. This is pretty simple, don’t spend money that you don’t have as this will definitely have you singing January blues, which we want to avoid.
Tip 3.Stick to your budget.
We have already agreed that we will create a budget for this festive season. However, budgeting just like any other thing in this world requires a great deal of discipline. With all the sales and offers during this period, it is very easy for one to get lost in the hullabaloo, the more reason why we should keep our budget in mind and stick to it. This will help you save more and also behind 2021 on a clean financial slate.
Say it with me “I am responsible for my financial health”
Tip 4.Pay with cash
An estimated 40% of Christmas shopping last year was paid for with either credit cards or loans borrowed from lending institutions. While it may be tempting to add that purchase to your card, it’s better not to. Don’t let the interest come back to bite you, pay with cash whenever possible.
This year has been difficult, fortunately for all of us December is here and we can finally close this chapter. However, we all have a responsibility when it comes to our finances and this is why it is paramount that we start the year on a clean financial slate. With little or no debt. With a budget and most importantly, with a disciplined and abundance mindset towards our finances.