For some people, based on their family traditions, Christmas is the highlight of the entire year visible by gatherings with family and friends and the exchanging of gifts. This necessitates improving the aesthetics of our homes – or as we say in Jamaica ‘spruce up di yaad’.
Consequently, the season is marked by a lot of commercial activities – sometimes leading to ‘binge spending’. Indeed, the average working Jamaican looks forward to receiving a bonus on their salary, share of profit, commission or some other monetary reward for their year-round efforts. According to Remittances to Jamaica: Findings from a National Survey of Remittance Recipients, a research conducted by the Bank of Jamaica, December is also a peak month for an increase in remittances from abroad.
With all this extra money flowing around, it is necessary to maximise on these available funds.*
Here are a few recommendations:
1. Create a budget. Determine how much you are willing to spend and on what it will be spent. Do not budget for what is expected, but for what is actually received, as any overestimating can lead to overspending. One way of sticking to your budget is through a spending journal.
2. We’ve all heard the saying: “It’s not what you earn, it’s what you save.” Gurus recommend holding ten percent of the amount received. After all, you are going to need something with which to start the New Year.
3. Settle as many debts as possible, including credit cards, utilities or short-term loans. As much as Christmas is a time for giving and sharing, it is also a time of celebrating the peace that God gives. Why not give yourself the best gift – peace of mind from debt! Start the year with a clean slate.
4. Take stock of social spending. With the seasonal ‘feel good’ bug circulating, it’s always best to plan for social gatherings with friends, family and co-workers, including office parties. Indulge in drinks or dinner with friends, but don’t go overboard! Rather than dining out, have a ‘pre’ or ‘post’ Christmas potluck or bottle party with close friends; ensuring everybody contributes and the burden of expense is lifted from one person.
5. You may have completed your gift list; however, you can’t play Santa Claus and give presents to everyone. This is the trick of Christmas, requiring a lot of creativity. So when considering gifts, maintain a budget, shop early for pre-season low prices, be innovative and open-minded: gift vouchers may present the opportunity for others to choose their preferred gift and craft items may be a novelty and a memento, especially for those visiting from abroad. Gifting does not have to mean spending top dollar.
6. Since we’re on the topic of money management, investing in your child’s education (or that of a niece, nephew, godson or goddaughter) may just be the gift you haven’t thought about. Open an education fund or insurance plan with any of our local financial institutions.
To continue reading, purchase Vol.8 #9, 2016 Issue.