Close
One of the most common challenges to us is overspending. We often assume that everything would be sorted with a great new year resolution or monthly financial goal and just the right budget. But this is exactly what every ordinary person does and so far it hasn’t really worked when it gets to the festive season.
Our money-spending decisions are not just logical but also emotional. We often feel like we’re limiting ourselves from enjoying all the festive season has to offer when we limit our spending.
Always plan ahead on expenses to be met or items to be bought ot hired. This gives you a rough estimate of what to set aside for the festive season so you can save the rest. Good money management starts with being responsible in living within your means and saving more to gain financial security and invest more.
Write down a list of what you will need, what things you will hire, gifts to buy, transport fares, services and even food expenses. Your estimated cost will guide you on setting a threshold in spending. Don’t be too rigid with the limit. Allow for flexibility by spending slightly more or bargaining to spend a little less. This helps you avoid reactionary financial decisions that are regretable such as debt from unnecessary loans.
Cash transactions give you a better perspective mentally of how much you’re spending. This is because you will keep seeing how much you have left and what amount you’re using. This will also get you to focus less on maxing out your credit card and accumulating credit card debt.
Aligning all your financial decisions to your spending plan helps you focus on spending prudently. Remember, the wealthy earn more than they spend and not vice versa. Take time to review your spending plan so you can sort out any issues that would later cause you a headache.
And while at it, remember your monthly goal. This is a step towards your wealth vision. This will help you think long-term even as you plan for the short-term activities and expenditure.
More money is always better. Find ways you can earn more money to increase the amount you can spend. This is a way better option than spending in excess and later on finding how you can get back money. Many times, this is what leads people into debt traps and the financial treadmill.
Arguably the one thing we do when we see something we like. But don’t settle for what you get when planning for holiday trips, vacations or even festive season shopping. This season is also arguably the one season you could get lots of items and services on offer before things peak in prices. And with seasonal offers like Halloween sales, Black Friday deals and Christmas season discounts, you may get to gross lots of stuff off your bucket list and get done with your checklist.
At financially fit, we believe that the best time to take responsibility for your finances is now. Waiting until you have a financial issue to sort out is not necessarily the only way for you to learn. By understanding the 7 steps of financial fitness, you can keep your spending in check. And not just that, perhaps you would want to learn how to make more money, avoid bad debt and plan that dream holiday you’re envisioning. The life you’ve always wanted is just one financial decision away!
Follow us on social media: Facebook, Twitter, Instagram and LinkedIn to get regular tips on how you can take care of your finances during the festive season.
Financially Fit
Riverside Drive, Nairobi – Kenya.
