Don’t start the new year broke
IT is known among the monthly salaried that January is the longest month of every year. With most businesses paying their employees as much as a week ahead of the usual 25th of the month in December so they can shop for Christmas, January can stretch into a gruelling financial marathon. Although the story of Jesus’ nativity should be foremost in our minds, we often find ourselves reflecting on when Christ was fasting in the wilderness for forty days and forty nights instead.
But this does not have to be the case, says Sagicor financial advisor Granville Knight. “Every year Christmas comes and goes, and every year you feast for a week then fast for a month,” he chides. “With proper planning, this can be the year when you break the cycle and start the new year with a bit more weight in your wallet, instead of your waistline.”
He gives these tips to help you avoid the common Christmas spending traps, and start the new year thriftily.
Wait
“There are hardly any real sales right now,” the financial advisor says. “After Black Friday weekend, the price of most goods tend to go up until post-Christmas when they are clearing out what wasn’t sold in the silly season. So if it is not an item that you need urgently, wait until after the holidays to buy it.”
Blame COVID-19
Knight suggests that if you find it difficult to disappoint the people in your lives, and tend to spend a lot to make them happy at Christmas, then you can take advantage of the pandemic excuse. They will understand. “Your teen wants the new iPhone? COVID-19. Your boyfriend wants the new PS5? COVID-19. Need a new outfit to go to Christmas brunch? Gatherings are illegal. Stay home,” he orders.
Conserve
“Pretend this Christmas that you are Julius from Everybody Hates Chris,” he suggests. “Julius would not spend a lot of money on Christmas lights, knowing that more lights on mean his light bill will be higher. Julius will not buy five fruit cakes knowing that the more he eats, the more time and money he will have to spend at the gym come January.” Knight suggests putting your Christmas lights on curfew, in anticipation of your January electricity bill. “Turn them on in the hours when people pass your house, but if curfew is 10, there is no need for your lights to be on all night. Who is watching your house? Casper?”
Balance the books
Knight advises that if you can’t afford to start the new year loaded, then you should at least start the new year with a clean slate. “This means paying off all your debts from now, and not taking on any new ones in the holiday,” he cautions. “The only thing worse than starting the new year on zero is starting the new year on a negative number. Use the Christmas bonus to pay off your auntie that you owe from when, and don’t you dare take that TV on hire purchase.”
Advance your new year resolution
“If, like you say every year, you really want to save more money in 2021, then don’t wait until you get the January paycheque to start,” he nudges. “Take out the first chunk from December and give yourself a head start. If you can pull it off and save this money with all the holiday pressure, it will motivate you to keep going when the January cheque finally arrives. It’s not rocket science. It’s discipline.”
