I HOPE I don’t appear a killjoy to remind us about this topic, specifically this “ber” months wherein we are preparing for our Christmas and New Year celebrations. But I’m sure, like me, you want that you still have enough money to get by happily, right after the New Year.
Here are some important reminders to control our spending:
1. Know your financial status.
Create a realistic monthly spending plan based on your income and past expenses. Keep up-to-date records, and know your total financial situation. Track your spending and compare it with your plan. Ask a trusted friend for help in understanding financial matters that are unfamiliar to you. It is easier to spend excessively if you are not sure about your financial status.
2. Choose your associations carefully.
If you are overspending to keep pace with your friends, then choose friends who place less emphasis on money and material things. The lifestyle and conversation of your friends greatly influence your desires.
3. Avoid shopping to alter your mood.
Instead of shopping to improve your mood, engage in some physical activity, such as taking a walk or seek out supportive friends. Yes, shopping can temporarily lift you out of a bad mood. But when negative feelings return, you may feel even stronger pressure to seek relief through spending.
4. Do not shop for recreation.
Shop only when you have a specific purchase in mind, and stick to your plan. Although you may browse the internet or visit a mall for enjoyment, much of what you see is designed to stimulate your desire to buy. Lavish shopping malls have turned shopping into entertainment.
5. Resist impulse buying.
You may tend to purchase on impulse if you enjoy the excitement of shopping and finding a bargain. Stop and remember past impulse purchases that you later regretted. To resist, slow down and think realistically about the long-term consequences of buying, owning and maintaining what you are planning to buy. Give yourself a “cooldown” period before making your final decision.
6. Use credit cards wisely.
Be wary of premium cards that have high borrowing costs and offer benefits that you do not need. Know you credit card’s interest rates and fees and compare credit offers to find the most affordable cards. Try to pay credit card balances in full each month. Credit cards make it easy for you to buy while ignoring the consequences. Sometimes, instead of purchasing on credit, save and pay cash for some purchase.
With the help of these important reminders in mind, hopefully, we can now prepare joyously for Christmas and New Year celebrations.
(Email: dr.nirmla_motoomull@yahoo.com)