Be savvy with holiday season spending
It’s all too easy to become caught-up in the traditional flurry of spending at this time of year.
DON’T be drawn into an excessive spending splurge this year-end holiday season and avoid having to face a depressingly ‘blue January’, grappling with the burden of too much debt, said Al Baraka Bank’s marketing manager, Yunus Paruk.
Paruk said: “We are facing tough economic times locally and globally and this has put a strain on ordinary consumers. But it’s all too easy to become caught-up in the traditional flurry of spending at this time of year. Exercisingrestraint and maintaining sound financial fitness regimes will ensure consumers can dodge the hurt of the January debt trap.”
Amid the festive frenzy, it’s easy to ignore financial goals and spend more than planned. He stressed: “January is often referred to as the ‘blue month’, as consumers struggle to overcome increasing and intensifying debt, the consequence of their December and festive season spending over-indulgences. Maintaining financial discipline can, however, have very positive outcomes. The secret is to remain positive and ensure that you spend only within your means.”
He encouraged consumers to develop financial plans, creating budgets to enable year-end indulgences, such as dining out, vacations, gifts the and the like, in line with affordability levels, whilst also building a more secure financial future, putting funds into savings accounts or investment plans.
“We all have good intentions regarding savings, but there always remains the temptation to spend – especially during the year-end holiday season – instead of saving. The goal should be to curb the desire to splurge on purchasing items that we don’t need, but merely want,” he said.
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He urged people to be spend-savvy this December – treat savings as an expense, putting money away before spending, or reserving a portion of your bonus to help cover January’s expenses.
Avoid taking on new debt and steer clear of using overdraft facilities or credit cards.
“Give consideration to waiting for the post-Christmas sales to make purchases of such items as clothes, appliances and furniture. Keep your holiday expectations realistic and take time to connect with those about whom you care.”
He suggested splitting bonus funds, so as to achieve a balance between saving and spending, and to establish a debit order for savings in order to avoid faltering on this important initiative.
“Believe that you can consistently initiate and maintain a savings plan. Visualise your long-term goals and the joy you will derive when you accomplish them. Creating real wealth involves taking a series of small steps towards your goal. Above all, take care of your finances this holiday season, spoil yourself and your family, within reason, and ensure that you plan to save towards a financially secure future,” Paruk concluded.
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