Money Matters

More Bang for your Buck

More Bang for your Buck More Bang for your Buck

The season of good cheer is upon us and our usual habits are in full swing. People are prepping Christmas colour schemes, planning social events, and shopping lists are growing longer every day. However, our wallets can’t always keep up with our ambitions and January often finds us nursing a wounded bank account, as well as a food baby. Luckily, Caribbean people are adaptable and good at finding creative solutions to financial limitations.

Here are 10 Christmas saves that will help you deck the halls, while avoiding a financial hangover
next year.

1. Budget

Carefully consider everything you’ll need to spend on and make contingencies for unplanned expenses. There are plenty of Christmas money-planning calculators online, designed to account for typical Christmas spends. Plan for higher bills and other incidentals that typically pop up in January.

2. Get WIFI (What Is First Important – A.K.A Prioritise)

This year, ask yourself what is most important and why. This will guide you to wiser decision-making. Mendel Thompson, Former Manager of First Heritage Credit Union’s Wealth Development Unit, says we should use what he calls “zero-based thinking” to help us prioritize our finances. “Look at what you’ve learnt from previous Christmases and ask if you’d do things any differently. What ended up being used most and least? Do you really need all of the same items? If the answer is no, DON’T DO IT!”

3. Trim the Fat

Not body fat. Well, that too. But a good idea in the months leading up to Christmas is to cut back on some of your regular expenses in order to free up funds for December. Some people lighten their grocery load, while others downsize the social scene. Some even sell a few unwanted or under-used items and drop the money into a Christmas fund.

4. Potluck Christmas

Food is one of the season’s biggest expenses and everyone loves to put out a good spread for friends and family. But instead of footing the bill yourself, why not pool with your family so everyone brings a dish? This is not only cost effective, but helps build family dynamic and you may even discover some hidden talents amongst yourselves.

5. Avoid Pay-Day Loans

It’s tempting to take up trending quick cash offers by financial institutions during the holidays. Unless you are quite sure you can repay on time, pay-day loans are best left alone.

6. Smart Automated Savings

Another one of Mendel’s nifty tips is to a utomate your saving plan. “Set it and forget it. This is one of the easiest and most effective ways of saving for anything we want. Treat your savings like a TAX and let it come out automatically. Set up salary deduction or standing order at your financial institution. You can start small and increase it every month or so and you will be surprised how it grows. Your local credit unions are your best bet, as they tend to offer some of the most attractive rates on small savings”.

7. Good Timing is…Everything

Many stores cleverly try to unload old stock by offering blow-out sales in the pre-season months. Keep a look out for discounts on things you can give as gifts in December.

8. Deck the Halls With Boughs of – On Second Thought, No!

Here’s another reality check. Why spend tonnes of money on something you’ll only display for a short period anyway? Your family and friends care about drinks and food and presents – and hopefully spending quality time with you – not the ugly 7-foot light-up manger display in your front yard.

9. Make a List, Check it Twice

Everyone has walked into a store wanting 5 items, coming out with 30. Ladies, I’m talking to you especially! If sticking to your list was ever important, it’s during
Christmas. Learn to “man-shop”. Run in, grab only what’s on your carefully written list and “Bolt” for the door. Make sure you pay first, though!

10. DIY Christmas

Instead of spending a mint on decorations, wrapping material and cards, think of fun ways you and the kids can do it yourselves. People usually cherish home-made cards and gifts, more than generic store-bought sentiments anyway.