By Edgar Brandt
THE festive season is around the corner and this is the time of year when most people spend beyond their means. This is no surprise as it is the season of giving and after a long year of hard work, there is nothing like the holiday spirit to encourage overspending. However, when January arrives the Christmas cheers usually turns into tears.
“The most important tip to not overspend this Christmas is to avoid debt traps and only spend money you have in the bank or in your pocket. Retailers and financial services providers will tempt you to buy on credit, with special deals everywhere you look, disguised behind Santa’s great smile and pictures of families and friends exchanging gifts. If you give in it will only result in high interest, fees and additional debt repayments in the New Year,” remarked Nedbank Namibia’s Senior Manager for Retail Credit, Niki Hayward.
Hayward advises Namibians to meet all existing commitments first and then budget for gifts, food, decorations and holiday expenses and stick to it. Said Hayward: “Remember all the extras you usually forget to budget for. If you did not save up to buy friends and family great gifts, be more creative and conservative when buying gifts. Make your own gifts or instead of buying everyone a gift, throw names in a hat and buy only one gift for the person whose name you draw; organize a potluck meal where everyone brings a dish to Christmas dinner.”
She went on to say that if you stick to your budget and not raise additional debt, you won’t have to worry and be stressed about paying the Christmas debt in the new year. The last tip from Hayward is to plan ahead for next year. “Keep track of your spending this year and start saving early in the new year for the next Christmas,” she cautioned.
Meanwhile, Bank Windhoek’s Manager for Business Development (Traditional Banking Services), Bokkie Cloete, emphasized that Bank Windhoek is an active member of the Financial Literacy Initiative (FLI) that was launched last year to educate the Namibian public about managing their money wisely. “The festive season is a time when many people take their finances for granted as everyone is in a celebratory mood, gifts have to be bought and one must attend all the fun events and activities taking place,” noted Cloete.
It is advised that people do not spend money that you do not have and especially on things that you do not need, simply to impress your friends and neighbours. Further people must stick to the budget, and learn how to say no to the children’s demands for unnecessary and expensive gifts. For those who received a bonus they must use it wisely by, for example, first buying the most important things such as the children’s school uniforms and stationery and putting money away for the school fees, before it is splashed on parties and gifts. The final advice is that people have to learn to save for the festive season early in the year.