Christmas shopping: Beware of the January crunch

CHRISTMAS   FESTIVE SEASON

KAMPALA - Christmas is characterized by merrymaking and people are usually tempted to spend big on whatever meets the eye.

Setting a good budget will help you spend within your limits. However, reckless spending will turn merry to gloom come January if you abandon the budget and play to the attractions of the eyes.

This festive season also comes with the temptation of items tagged with attractively low prices, something that supermarkets or online stores do to lure buyers. However, a well laid out budget will help you stick to your shopping list.

Tom Abaho learnt the hard way after he blew his savings when he went shopping without a budget during last year's festive season.

He bought whatever he set his eyes on and forgot to spare some money for upkeep before his next salary.

"It really hit me hard after that Christmas season, I didn't have a budget and bought stuff out of excitement," he recounts.

Many of us have been in the same situation as Abaho, however, setting a budget and sticking to it comes in handy.    

Simon Wafubwa, managing director of Enwealth Financial Services, says it's very important to understand that December paychecks are largely meant to take care of January bills.

"Therefore, it is advisable to pay January bills as soon as you receive the December paycheck. Where discipline is an issue, standing order agreements can be made with the payees and saving companies," he advises.

Wafubwa adds that planning to spend on what is needed and not wanted within someone's limit is the wise path to take.

Shopping Tips

Wafubwa gave a number of tips that can help one avoid reckless shopping as follows:

Stick to a shopping list and shop in bulk

Avoid peer pressure; one does not need to attend every function they have been invited to

Avoid taking debts for consumption purposes and where possible buy items on cash basis - no credit purchases, credit cards

Identify items that are absolutely necessary and dispense the rest

Watch out for offers/discounts and compare prices before making a purchase

Create home-made gifts instead of buying expensive ones

For those traveling, keep the holidays short

Keep travel costs within your budget and make bookings early enough

Avoid last-minute shopping rush; buy items earlier when the prices are quite fair

Learn from your mistakes and avoid them