Suburban
THE festive season is upon us and consumers get carried away with spending money like confetti on luxury items, goods, and food, forgetting that come January social media platforms will be awash with images depicting abject poverty in households.
This will be a far cry from the feasting on delicacies reserved mostly for parties, weddings as they find themselves in hand-to-mouth situations that have resulted in this condition being known as January disease.
Civil servants are smiling all the way to banks as bonuses have been paid beginning last week, while other employers are set to follow suit after they are paid their 13th cheque giving consumers extra disposal incomes to spend.
There is therefore need for responsible spending on the part of consumers in order to avoid getting into debt after the festive season has ended. There is need for consumers to embrace financial literacy.
Steps to consider:
Prepare a household budget that includes a spending plan where money should go in form of a family calendar, tracking incomes and expenditures intended for a month
Items to include in the household budget:
Necessary expenses i.e. food — needs /wants
Utilities — water, electricity
Shelter — housing or rentals depending on where you reside
Transportation
School fees
Emergencies, funeral, medication, travel expenses
Importance of budgeting
Know how one is spending their finances
Helps one determine their priorities and any changes
Plan how to use your money present and future taking control of finances
Shopping tips for consumers:
-Prepare a shopping list of items and try to stick to your budget
If you go shopping walk the aisles whilst taking essentials
Keep an eye out for items on specials, discounts and bargains. It is important to check sale by dates
Take advantage of advertised discounts or in-store promotions to save money
Avoid (peacock mentality) that is showy, flash spending more than you have 13th cheque entails consumers having extra disposable cash they could set aside for purchasing household property
Be on the lookout for contract of sale agreements such as credit schemes, hire purchase, Lay-buy agreements, and land barons who could possibly rip off people if they do not undertake due diligence
Takeaways:
Commit to a savings plan even starting small
Create a financial plan, preparing a clear vision for the future setting goals either short-term, medium, or long-term
Consumers generally have a short memory of expenses, hence need to prepare a budget to ensure keeping track of expenses and expenditures
Debt is expensive to keep at manageable levels to avoid over borrowing
Plan all your expenses and avoid ad hoc and unplanned expenses
Allocate a certain amount for savings
This article is produced courtesy of Public and Communications department contacted on [email protected]. — New Ziana
