YES, IT'S that time of year again. The plazas are jammed and there seems to be a constant state of bumper-to-bumper traffic on the roads.
It's the Christmas season and with all the joy and excitement in the air, there is one crucial component that is a part of everyone's holiday schedule...shopping!!!
No matter how hard times are, Christmas shopping is one of those necessary 'evils' and Jamaicans everywhere are digging around trying to find the money to purchase gifts for their loved ones. Arguably, there is probably no way to get out of this annual cycle, but there are some ways that can make the 'burden' more bearable for you and your pocket.
LOOK AT THE BIGGER PICTURE
In the midst of all the spending, don't lose sight of the total income you have to work with. Now, your total income should comprise of what you expect to receive in your regular pay cheque and/or from your Christmas bonus. Once you have a fair idea of what you expect to receive, keep that figure in mind.
CHOOSE FIRST THINGS FIRST
Be sure to tally the total amount of fixed expenses that you have to pay during the season, particularly those that are important to life and living. These include, utility bills, car maintenance costs and groceries. Remember, before we get 'trigger happy' with the gift-giving, we must remember to take care of the important pieces of expenditure first. After all, without them Christmas just would not be 'merry'.
BALANCE OUT
Once you've tallied your income and expenses, subtract the latter from the former to see how much you have to splurge on shopping.
While the figure you get from this simple formula may be a mere estimate, it still helps to paint a better picture of how 'wild' you will be able to get on your spending. For those who have been saving for the holiday season from earlier or in the year, add that amount saved to this figure for your true estimate.
PAUSE FOR A LESSON
Before we go any further, let's pause for a while to learn a very important lesson. If your shopping budget looks smaller than you would have liked, don't beat yourself over the head, instead use the opportunity to do better next time.
The important thing to learn here is to start saving for Christmas shopping in January. Yes, January. The earlier you start to save in small increments each month, the more you will have to spend when the shopping period comes around.
MAKE A LIST & CHECK IT TWICE
Before hitting the stores, make a list of the gifts you need to purchase and for whom. Making a list enables you to both identify what gifts you need to buy, while paying attention to their costs, and also minimizes your being tempted to buy more expensive things once you get to the plazas.
Go over your list to ensure that the total cost of all the gifts is within your budget, and be sure to stick to your list once you get out there.
LEAVE YOUR CARDS AT HOME
Shop with cash. A controvesial recommendation, but think of it this way, shopping with cards (debit or credit) doesn't help to give a true picture of how much money you have to work with. Walking with cash means that once you see your money physically depleting from your wallet, you will be forced to put the brakes on optional expenditure.
THINK OF ALTERNATIVES
Who says that gifts have to be bought in stores? If the season is really about loving and sharing, then why not give a gift that shows you care? How about a home-baked pudding? Doing someone's laundry? Spending time with an elderly relative or friend? One will be surprised how much further gestures like these will go on the 'appreciation scale', while easing the burden on your budget.
FOCUS ON THE FUTURE
Let's not forget that in the midst of the shopping frenzy at the end of the day, you still have your medium to long-term financial goals to think about.
Never lose sight of the calm that will come after the storm, and be mindful of the regular instalments that will have to be made in the New Year to your savings and investment accounts.
A Merry Christmas to you and yours from the DB&G Family.
* To further discuss investing and the many options we have available, contact DB&G Toll Free at 1-888-CALL DBG.
