Expert: Bad Financial Habits Kenyans Should Avoid This Christmas

By John Kariuki

This year has been filled with steep increases in living expenses due to the tough economic climate. So what can you do to make sure that you keep within your budget in December?

As a starting point, you need to think twice about how you are going to spend your hard-earned money during the holiday season.

Most people tend to get carried away over the festive season by going overboard without a proper plan set in place. Be careful not to fall in the over-indebted trap during the December holidays because it will probably have damaging consequences come January.

Peter Macharia Kamau the CEO of Jijenge Credit, the leading non-deposit taking microfinance, gives tips on how to spend this festive season.

“During the holiday you can easily bust your budget and abandon good financial habits, so we sampled these 10 money-wasting things that you can avoid.

1. Not setting a budget

 Not setting a spending limit can easily lead you into exceeding your cash tabs hence leaving you without enough cash in your account to pay bills. 

2. Shopping without a list. 

Never go back to the store without knowing what you’re going to buy for friends and family this holiday season. Otherwise, you could end up submitting to the pressures of overspending. 

3. Shopping at the wrong times. 

Ensure you get to know when and where you can get superb  deals and buy your stuff when they are on offer, You can use a deal tracker such as dealnews.com

4. Not comparing prices.

Compare your price before making purchases, to make sure you don’t spend more than you have to on gifts

5. Racking up a credit card balance.

If you charge everything to a credit card and don’t pay off the balance, those savings can easily be erased by the interest you’ll be paying on that balance.

6. Paying too much for shipping. 

You can always avoid paying for shipping by having your purchases shipped to a retailer’s brick-and-mortar store or by taking advantage of free shipping promotions. 

7. Being too generous with donations. 

Choose an organization or two that you particularly care about and an amount you’re willing to give, remember you can’t help everyone at a time.

8. Tipping too much.

 Although tipping during the holidays shows your appreciation, you don’t need to compensate everyone who provides a service. 

9. Going overboard with holiday décor.

You can easily make your home look festive without spending big bucks on a light display and racking up a huge electric bill. Try the natural approach like fresh greenery collected for free from your yard or a friend’s yard.

10. Buying bad gifts.

 Don’t waste your money on gifts that no one wants. Instead, buy a gift card if you don’t know exactly what to give someone on your list.

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