Season greetings to the Leruo family and Basotho at large. What a year 2023 has been, right?
The past twelve months have been plagued with increases in food prices, high inflation, interest rate increases and many more challenges that stretched every Loti. On the emotional and mental health side of the coin, some families have experienced pain and the loss of their loved ones. At times, sacrifices and lifestyle changes had to be made to achieve financial goals. Somehow, you have survived it all and you finally have the chance to catch your breath, let your hair down, relax and spend your hard-earned money.
The question, however, is ‘how do you enjoy yourself without going broke?’
This week’s article discusses five tips to help you plan and manage your spending this festive season.
Have financial discipline.
A key ingredient to managing one’s finances is to have financial discipline. You need to have clear financial goals, map out a plan to achieve these goals and have the discipline to see them through. The festive season is notorious for derailing many plans, avoid the temptation and have the financial discipline to see your plans through.
Plan and take care of all your commitments.
As discussed in the article ‘Plan and avoid the Jan-U-Worry financial stress’ available on The Reporter’s website, a financial planning hack to consider is budgeting for January expenses like school fees, debit orders, transportation and groceries. Avoid spending recklessly during the festive season and consider paying these expenses in advance if you do not have the financial discipline.
Top up your emergency fund.
If you have extra income this festive season e.g. 13th cheque, bonus or ‘chelete ea mokhatlo’ remember to top up your emergency fund to take care of unplanned expenses or delayed salary payments.
Set financial boundaries.
As shared in the article ‘The relationship between financial and mental health’, our finances have a big impact on our mental well-being. The festive season can negatively impact one’s overall well-being because of unrealistic demands to provide for the family, spend money or deal with negative comments. Consider setting financial boundaries and saying no to things or situations that negatively affect you.
Celebrate your achievements.
A significant number of Basotho do not celebrate the milestones achieved, however big or small. Instead, they often downplay the achievements or quickly move on to the next goal without acknowledging or celebrating what has been achieved. Whether you have opened a savings or investment account this year, started budgeting and tracking your money, paid off debt, in full or partially prioritised your personal or professional development, prioritised your mental health and financial well-being or set financial boundaries and enforced them, I encourage you to celebrate that and do so intentionally.
Stop feeling guilty for the goals you did not achieve and permit yourself to celebrate the goals achieved. Yes, spend some money on yourself and buy that spa voucher, new bag, or pair of shoes, top up your investment account or buy that book this festive season. Do not, however, go broke when doing so! Likhomo!
