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Money - December 2, 2021

Avoid these 3 Money Mistakes this Christmas

It is that time of the year again. Christmas and New Year celebrations are fast approaching, and many of us are making plans for a "Detty December" and creating resolutions for the New Year. 

It is that time of the year again. Christmas and New Year celebrations are fast approaching, and many of us are making plans for a “Detty December” and creating resolutions for the New Year. 

While some have the financial means to fund parties, vacations and adventures, many others do not. They are forced to squeeze as many expenses as possible into a limited budget. That is why they are tempted, however erroneously, to overspend.

The euphoria in spending this December in a “Detty” way could make people overspend and ignore the voice of reason that often reminds them of the life after the Yuletide. Some go as far as taking loans to impress family and friends they haven’t seen for a while. This is extreme financial risk-taking.

Although there are several suggestions on how NOT to spend your money this season, here are a few to help you make the right choices.

Don’t incur new debts

If you do not already have debts, don’t start now, not for Christmas celebrations. And if you’re in debt, do not add to your burden to please everyone. It may seem like a very noble move, but you should know you can’t please everyone no matter how hard you try. Also, don’t compare yourself to anyone. This season, people wouldn’t mind overspending just to show they’re financially capable, especially at gatherings of family and friends. Please don’t feel the need to outshine them by spending more; it’s a race to the bottom. Start the new year with a solid financial foundation.

Don’t Lend money

Don’t lend people your hard-earned money in the name of celebrations. If you have excess, borrow only people who are credit-worthy and have a genuine reason for borrowing. Taking a loan to throw a Christmas or new year party is certainly not a genuine reason. As a matter of fact, by saying NO to loan requests, you’ll be doing yourself and the potential borrower a great favour. This is because people mostly broke in the first quarter of a new year. So you wouldn’t have to wait forever to get your money back, and the intended borrower would not be under pressure of loan repayment. 

However, If you must give, it is recommended that you only lend money you can afford to give away.

Don’t be Tempted!

You will be surrounded by dozens of Black Friday offers and promotions. Avoid purchasing anything that you do not need, regardless of how inexpensive they are. Of course, you can spoil yourself a little if you have excess cash. However, do it with extreme caution. Remember that another 365 days are ahead of you, and no one knows the issues each would bring, just like COVID-19 showed up unexpectedly in 2020. Save for the rainy day!

READ MORE: Get Your Small Business Noticed this Christmas

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