WHY IS JANUARY DESCRIBED "AS A YEAR IN A MONTH"

 I have over the years heard descriptions given to January every year from various people from the time I was young. In general the way January of every year is described is not very optimistic in terms of finances. I want to relate it to the festive season. The festive season is a period where various families gather to celebrate and wind up the new year. This is noble because a year is such a long time. However since it is a period of spending sometimes caution runs out of the window. In the past we have heard of people who lost their lives due to excessive eating and drinking. This is an indicator of what happens during the festive season. Many things are done in excess. What this calls for is to embrace discipline especially in money management.

As a Financial Literacy Trainer I have interacted with a number of savings groups which have religiously saved money and shared it in December for consumption. Iam not against spending because society can not thrive without spending but we need guided spending. The question that I pose is why accumulate a lot of money over the years and spend all of it on luxuries? What can happen when there is an emergency? What happens the next year when one has to pay school fees and rent?

The reason why January is a dreaded month in terms of finances is that many times some people do not take time to take stock of their financial situation and are caught by surprise . Remember of late money is scarce and therefore it has to be planned accordingly. We do not only plan for money when we have it but budgeting should even start when we do not have the finances. Many get the money and it slips out of their hands due to lack of adequate financial skills.

In a nation where majority of the people are youths due attention must be placed on inculcating wise and responsible financial management habits. A number of youths have placed their financial destiny in get rich schemes to the extent that some even sell off their valuable assets such as laptops to bet in anticipation of quick returns which in most cases is on the contrary.

HOW TO MAKE WISE FINANCIAL DECISIONS

1.Have a long term perspective to your financial future

2.Save As You Earn

3. Track expenses

4.Avoid moving with excess cash

5.Seek financial mentorship

6.Live within your means

7. Develop a budget

8.Set up an emergency fund.

The notion that "January is a year in a month" is closely related to our money habits. Since money is a scarce resource due attention must be given to how we handle our finances during the festive season.

Phillip Kiryowa

Personal Finance Coach(CPC)

Advanced Empowerment Link

+256752615916


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