Growth & Jobs | Budget to make the most of your Christmas spend

AS CONSUMERS enter the busy Christmas season and begin their shopping activities for gifts, household items, personal effects and spending on outings and parties, one banker is encouraging them to spend responsibly by setting aside some savings before beginning to shop.

Ricardo Williams, head of branches-eastern, JN Bank, said it is imperative that saving is prioritised, especially during the festive season.

“It’s easy to get caught up in the merriment of the season and just spend a lot of money, but before you shop or pay for entertainment, it’s important that you make a budget and use certain tactics to avoid overspending, especially because we usually get paid early in December” he advised.

He noted that there are a wealth of personal benefits to be derived from savings such as the ability to establish a financial safety net. It also positions one for asset acquisition, education attainment, and to respond to emergencies and other needs as they arise. Therefore, Jamaicans should always ensure that they consistently save.

He provided some tips to help consumers save while they plan to shop.

PREPARE A BUDGET

Williams said persons should create a special Christmas budget, factoring in how much they plan to spend, and ensure that there is an allotment for savings.

“Set aside the savings in a less accessible account, perhaps one without a debit card so that you can’t easily withdraw it,” he stated.

Additionally, he said that many persons tend to se,t aside savings and end up using it because the money is too accessible.

MAKE A LIST

After making the budget, it is important to make a list of all purchases to ensure that no unnecessary purchases are made, Williams recommended.

ANALYSE THE LIST

He said consumers should go through their lists, assess whether they need to buy a particular item, and ensure that they are not making unnecessary purchases.

“Don’t just buy something for the sake of buying it. Ensure that it is something you need and not something that is just a want or one which you already have. Nevertheless, it is OK to gift yourself but do so wisely,” he said.

AVOID IMPULSE PURCHASES

To achieve this, persons should stick to their shopping list as much as possible, Williams advised.

“No matter how good the discount looks, if it’s not on the list, it means yo,hen going about your business. Avoid walking with large loads of cash and opt to use credit or debit cards instead. And when shopping online, use your cards on reputable sites and track your card alerts to ensure that the purchase is made by you,” he cautioned.