IS THE FESTIVE SEASON RESERVED FOR SPENDING?

 I have had a chance to interact with a number of savings groups. Most of their discussions revolve around sharing their proceeds that they accumulated over the year. I should commend that many Ugandans are good at saving. It is not easy to save amidst the high cost of living and scarce resources. The question that I want to pose is, is the festive season reserved for only spending? Is the focus on spending the reason why January of the new year is such a hard month to deal with for many people? 

There was a group of hardworking women who saved 17 million Uganda shillings and shared it amongst themselves. By the beginning of the year they had nothing left. It is good to enjoy the festive season because leisure is part of life. However there is a need to balance between saving and investment.  If the predominant behavior is to spend then investment will be neglected. For parents who have to pay school fees in the new year careful attention must be made to ensure that they plan for school fees. What about emergencies that can crop up when all the money was used for festivities.  Other people in the villages have lost lives because of excess happiness during festivities. It seems that life requires balance and discipline in every dimension. For families that practice financial discipline they plan as a team for such periods of festivities. They know that money must be spent wisely  and there is a need for a budget.

Living within our means is one of the key tenets of a financially literate society. Iam happy to note that the financial services industry has intensified financial literacy campaigns through organizations such as Uganda Bankers Association, Uganda Financial Literacy Association and there is a remarkable change in financial behavior especially in urban areas. However it should be noted that a lot needs to be done to ensure that we enhance the financial capability of Ugandans.

HOW TO REGULATE SPENDING DURING THE FESTIVE SEASON

1. Spend with a budget

2.Track expenses

3.Avoid moving with excess cash

4. Save as you earn

5.Avoid peer pressure

6.Seek mentorship

7.Live within your means

8.Associate with financially successful people

The festive season is a season for celebration. The truth is that completing a year is not an easy task. A lot happens but discipline is key in every area of life. Since money is a scarce resource, it is prudent that it is used wisely during the festive season as discussed above.

Phillip Kiryowa

Personal Finance Coach

Advanced Empowerment Link

0752615916

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