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Sunday,September 27,2020 23:34 PM

Avoid getting in debt this season

By Vision Reporter

Added 19th December 2012 01:25 PM

Christmas is here and this means planned and impromptu spending. Question is, how does one meet the financial demands that come with the season without going into debts

Christmas is here and this means planned and impromptu spending. Question is, how does one meet the financial demands that come with the season without going into debts

Christmas is here and this means planned and impromptu spending. Question is, how does one meet the financial demands that come with the season without going into debtsYvonne Katende brings you financial planning tips that will leave you stress-free and with some cash tucked away after the season 
 
Make a budget
 
Many financial experts agree that listing specific financial goals is one of the best ways to achieve financial independence. They also advise that you track your spending throughout the year and during the gift-giving season so that you are on top of your finances. 
 
Keeping track of your spending is the best way to know how much money you are spending each month. When you are sure of how much money you have to spend on your holiday shopping, make a list of relatives and friends, whom you would like to give gifts to and only buy what you can afford.
 
Seek deals from retailers
 
Take advantage of retailers’ need for more customers as the year comes to an end. Many shops will offer discounts on many items during the season.  
 
Many retail shops offer customers the option to earn points with a frequent buyer’s card. 
“We are passionate about our customers and are committed to providing them with promotions such as the smart card.
 
The card accumulates points, which are accrued at the point of purchase. On accumulation of points, several prizes are availed in different rewards,” says Maureen Nekesa, a manager at a chain store in Kampala. 
 
Additional income
 
To stay afloat of all the holiday spending, invest in a side-business that can bring in additional income. This will help ease the financial strains that come with gift buying. 
 
“An extra income is a necessity,” says Jane Musoke, an administrative assistant, who sells clothing accessories to friends and co-workers as a way to earn extra money. 
 
Musoke adds that she counts on her business to help supplement her income, especially during the Christmas season.
Overspending during the holidays can lead to debt as you enter the New Year. An additional income is a great boost for those shopping trips.
 
It is the thought that counts
 
The holidays are about relationships and less about spending. Therefore, you could consider giving non-retail gifts this holiday season. Your gift can be as simple as baked goods, a small donation to relative’s school fees or a charity. It is the thought that counts not how much the gift costs.
 
“I visit my mother who takes care of my little boy,” says Nakato Nantaba, a housekeeper in Kawempe, a Kampala suburb. 
She spends most of her money on helping her mother with monthly expenses. So, when it comes to holiday gift-giving, she is happy to help her mother with housework. 
 
Spending quality time with your family and friends and sharing a meal or enjoying time together can also be considered a gift.  
 

Avoid getting in debt this season

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