THE festive season is upon us and consumers get carried away with spending
money like confetti on luxury items, goods, and food, forgetting that come January
social media platforms will be awash with images depicting abject poverty in
households.
This will be a far cry from the feasting on delicacies reserved mostly for parties,
weddings as they find themselves in hand-to-mouth situations that have resulted in
this condition being known as January disease.
Civil servants are smiling all the way to banks as bonuses have been paid
beginning last week, while other employers are set to follow suit after they are paid
their 13th cheque giving consumers extra disposal incomes to spend.
There is therefore need for responsible spending on the part of consumers in order
to avoid getting into debt after the festive season has ended. There is need for
consumers to embrace financial literacy.
Steps to consider:
-Prepare a household budget that includes a spending plan where money should go
in form of a family calendar, tracking incomes and expenditures intended for a
month
Items to include in the household budget:
– Necessary expenses i.e. food – needs /wants
-Utilities -water, electricity
-Shelter -housing or rentals depending on where you reside
-Transportation
-School fees
-Emergencies, funeral, medication, travel expenses
Importance of budgeting
-Know how one is spending their finances
-Helps one determine their priorities and any changes
-Plan how to use your money present and future taking control of finances
Shopping tips for consumers:
-Prepare a shopping list of items and try to stick to your budget
-If you go shopping walk the aisles whilst taking essentials
-Keep an eye out for items on specials, discounts and bargains. It is important to
check sale by dates
-Take advantage of advertised discounts or in-store promotions to save money
-Avoid (peacock mentality) that is showy, flash spending more than you have
-13th cheque entails consumers having extra disposable cash they could set aside
for purchasing household property
-Be on the lookout for contract of sale agreements such as credit schemes, hire
purchase, Lay-buy agreements, and land barons who could possibly rip off people
if they do not undertake due diligence
Takeaways:
-Commit to a savings plan even starting small
-Create a financial plan, preparing a clear vision for the future setting goals either
short-term, medium, or long-term
-Consumers generally have a short memory of expenses, hence need to prepare a
budget to ensure keeping track of expenses and expenditures
-Debt is expensive to keep at manageable levels to avoid over borrowing
-Plan all your expenses and avoid ad hoc and unplanned expenses
-Allocate a certain amount for savings
*This article is produced courtesy of Public and Communications department
contacted on pr@ccz.org.zw
