Don’t Go Splurging This Yuletide Season. Spend Wisely And Keep Your Bank Account Green
Nothing beats the end of year holiday season. It is the time of thanksgiving for witnessing a full and eventful year come to a close, whilst expecting another fruitful one ahead. It always calls for merriment with friends and family. However, as we delight in the jolly mood and good cheer of the year-end, keeping up with the mandatory traditions attached to the festivities comes along with huge financial obligations and additional expenses. From holiday trips to holiday decorations, shopping for gifts and clothes, and preparing elaborate meals, there is no doubt that this holiday season can weigh heavily on our pocket. Read Also
In Nigeria, where the [i]Gross National Savings is at 13.10% – ranking 131st among 180 countries tracked by the United States’ Central Intelligence Agency (CIA) – many people commonly lose control over their finances at this period and begin the New Year broke and in debt. It has also become traditionally acceptable, in spite of the economic challenges, for many who travel to their hometowns to spend their yearlong savings frivolously within a week. What they forget is that December is just like any other month in a calendar year, and after it comes another ordinary month of January, also known as ‘New Year’, with more critical financial commitments such as unpaid house rent and school fees.
By planning properly, you can spend wisely and also save money, thereby avoiding the common holiday financial hangover. Here are some tips to guide you:
- Have a budget and stick to it strictly
When it comes to holiday spending, it is highly critical for you to determine a spending cap before the spending pressure kicks in. Ensure that you write down what you plan to spend on. This will allow you manage your spending decision. While making your budget, the most important things should be prioritised, while those that can be substituted or forgone can be considered if your budget isn’t exceeded.However, you must avoid setting an unrealistic budget that may eventually be difficult to implement. The honest reality of the season is that you will be tempted to make certain purchases outside of your budget. But you need to think before you splurge and avoid impulse purchases. Separate your holiday spending from your savings account, this will prevent you from dipping into your savings, and help you keep your bank account healthy even after the holidays.
- Start shopping early
As we all know, it has become a tradition for prices of foodstuff and other household items to generally spike during festive periods in Nigeria. There is nothing worse than settling for the worst gift items at the worst prices or spending more on food items because of last minute shopping.Getting started early on your Christmas shopping will help you reduce the pressure of settling for just anything, giving you ample time to shop at your convenience and strike bargains at the best prices. Typically, various online stores and mega stores nationwide have price slashes and discounts before Christmas; this will afford you the opportunity to make extra savings on gifts and non-perishable items.
- Look out for more affordable alternatives
Traditions are what make the holidays special, but they can also be a financial burden. Remember that cutting back on excesses can have a big impact on savings. Instead of focusing on the pressure from the retail world encouraging you to ‘shop till you drop’, you can make impactful gestures that will be less strenuous on your finances.Choose value over the price tag. As the saying goes, “It’s the thought that counts”. A valued gift doesn’t necessarily have to be the most expensive. Evaluate your options and do not be pressured into buying the expensive option. Also, focus more on making memories with family and your loved ones; after all, gifts do not always have to be material. Read Also
- Get your finances on track for the New Year
Once the Christmas festivity is out of the way, you might like to consider taking up a Savings plan to ensure your future financial goals are on the right track in the New Year. Leadway Assurance has a perfect customer friendly savings plan just for you! The Leadway Savings Plan is designed to assist you save towards a brighter future while offering you a life insurance protection cover, should the unexpected occur.
You may wonder how the Leadway Savings Plan differs from a bank’s traditional savings product. Well, with as low as N7,500 monthly contribution (which accumulates interest at a Leadway Rate), you are entitled to a Life Insurance of N1,000,000.00, which is payable to your named beneficiary in addition to your accumulated savings with interest in the event of death. With an additional premium, this cover may also be extended to include a worldwide cover, if you contact certain named critical illnesses or experience total and permanent disablement due to an accident.While the Leadway Savings Plan is suitable for everybody in paid employment or self-employment, irrespective of age, the Life cover ceases at 65 years. Contributions may be made monthly, quarterly, half-yearly or annually and those contributions qualify for tax relief. After the Policy’s second anniversary, you can take out a loan against your savings balance.
Good financial planning will help you enjoy not only the festive celebrations but the New Year and beyond too. For inquiries on the Leadway Savings Plan, call the Leadway Assurance customer care service on (01) 2800 700, 2800 701 or +2348129997139, or send an email to Lcs@leadway.com for more details. Read Also
UNDERSTANDING THE LEADWAY SAVINGS PLAN (TO BE DESIGNED AS INFOGRAPHICS)
- Minimum of N7,500 monthly contributory savings with competitive Leadway interest rate.
- Policyholder enjoys full payment of the accrued saving with interests at the end of the agreed savings term.
- Policy duration is for as short as 3 years, or for as long as policyholder extends.
- N1,000,000 Life Insurance benefits payable to named beneficiary in event of death during the policy period.
- A policyholder can take a loan on the savings account balance any time after 2 years of policy commencement.
- All interest earnings are not subject to withholding tax.
[i] ‘Stimulating savings, investments’, thenationonlineng.net, 2017