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Howdy folks. By the time you will be reading this, your good ol’ cowboy will be kissing the blessed soils of the land of his ancestors in Matavanda Village in Zaka – far from the madding crowd – celebrating the reason for the season.
We are in the most wonderful time of the year folks, a time of seasonal cheer, holiday parties, gift-giving and family get-togethers.
What is Christmas without all these and other activities?
But I would like to believe that most folks did not get their bonuses this year and December is just like any other month.
It is, therefore, prudent to be frugal in this season to avoid that malady which normally grips the festive prodigals when January comes.
What many folks forget is that January is a 75-day month which requires proper planning to get through it.
And for the Jonasi-like characters from Patrick Mukwamba’s “Wapenga nayo bonus” hit song, January can be a time of gnashing of teeth, the very teeth that they were used to chew expensive goodies during times like these.
Folks, Christmas is typically a peak selling season for retailers countrywide.
Sales increase dramatically as folks purchase groceries, gifts, decorations, and other supplies to celebrate.
It is actually estimated that retailers make 25 percent of their retail sales during the festive season.
And this year’s spending will be somehow abetted by the ridiculous price-cuts and discounts being offered by many retailers – whether paying by cash or electronically.
My favourite jewellery shop at Eastgate Mall is actually offering discounts of up to 50 percent, and the temptation to buy, buy and buy is just overwhelming!
The persuasive advertisements that we are bombarded with in the media don’t make the situation any better.
The discounts phenomena are already growing a muscle strong enough to pull inflation down.
Inflation for the month of October, which was the highest for the past 15 months, dropped from -0,95 percent to -1,09 percent in November.
Folks, inasmuch as we might want to be happy in this season, let us also remember that money is not the sole currency that purchases happiness.
You can actually celebrate the reason for the season without incurring a dime.
This is why I encourage you folks to avoid borrowing for the sake of going to that exotic holiday that will leave you as broke as a joke and without a chair to sit on when the Christmas carols stop playing.
Borrowing to consume can affect your entire plans for the year, as you will find yourself borrowing more again in January.
And since everyone else will be borrowing in January, interest rates will always be high.
Many people’s cashflows for the New Year are left vulnerable after January.
Folks usually wish each other a happy and prosperous New Year, but it doesn’t always turn out that way because of borrowing.
The New Year always finds them caught up in the vicious cycle of huge debt and stress.
It’s time to break that cycle, folks.
Passing pleasures of the festive season cannot be allowed to ruin your entire year, and your resolutions as well.
You must really have a concrete plan and a budget that you religiously stick to during this season.
And don’t go off limits.
Why are you trying to please everyone at the expense of your dreams?
Superman?
Robin Hood?
Our marginal propensity to consume is usually high this time of the year, as we are more prone to impulse buying.
It is important to always learn when to say “no” to that over-enthusiastic salesperson trying to sell you sunglasses that you don’t really need, just because you are excited.
You are going to need that extra buck in January when the going gets tough.
Another important thing, folks, is to always shop around and compare prices before buying.
It might be festive but there are shops out there offering clearance sales and promotions.
The other day I found a beautiful shirt in a clothing store being sold for US$5. lt was initially going for US$26.
Just imagine how much savings you can make if you first compare prices from different shops.
We need to promote more household savings in future, and this is the season to start practising the discipline.
Our country currently has unsustainable levels of savings of minus 11 percent of GDP.
It is, therefore, indispensable that we avoid wasting money on unnecessary things.
In his paper titled “The deadweight loss of Christmas”, economist Joel Waldfogel proved how many of us tend to waste money on gifts that are inappropriate.
Many of us also tend to get gifts that we don’t actually like!
In most cases, we give gifts to people not knowing what they want. Against the above background, Waldfogel postulated that consumer spending generates vast amounts of economic waste during the festive season.
Waldfogel said the Christmas deadweight loss is “the waste that arises from people making choices for other people”.
Said Waldfogel: “Normally, I’ll only buy myself something that costs US$50 if it’s worth at least US$50 to me. When I go out and spend US$50 on you, though, cause I don’t know what you like and what you need, I could spend US$50 and buy something that would be worth nothing to you.”
Folks, think twice before buying those golf clubs for your colleague.
He might not use them at all and it will amount to economic waste. Always try to keep it simple. Waldfogel actually encourages people to send each other Christmas cards as opposed to gifts.
The proliferation of plastic transactions has reduced pressure on cash as most people now use debit cards to make payments.
However, there are technical glitches that you should be always wary of, especially during this season when there is a lot of pressure.
Sometimes your debit card might decline to process your payment on the POS machine, yet the money would have been deducted from your account.
Always keep your receipts and reconcile them with your wallet trail to make sure that they agree.
While the concept of mobile money has brought much convenience, it has also brought some threats to financial discipline and there is need for folks to be very careful this festive season.
Many folks are now literally walking with their lifetime savings in their pockets, whether going to the beerhall, party or other events during this season.
Go easy on your mobile money and don’t be tempted to buy endless rounds of wise waters for your buddies, only to wake up with an empty e-wallet and regretting.
One of the reasons why January appears to be a very long month is because many people get paid early, some as early as mid-December.
By the time they get to January 1, they would have already hit rock bottom.
It is, therefore, important that you never postpone your monthly expenses such as rent, rates, fees, uniforms and other routine expenses.
Pay them as soon as you get your money and you will have peace of mind come New Year.
Again, let saving be your motto this season.
Why, for instance, go eat out when you can cook a nice meal at home? Why go out to watch a movie when you can watch it in the comfort of your own home?
Every dollar counts!
I wish you all a Merry Christmas and a fruitful New Year!
Later folks!
Online Reporter