More often than not people lament the harsh economic times they experience in January. To this extent, the first month of the year is often referred to as ‘Njaanuary’ meaning the month of financial pain and struggles.
One of the reasons why Kenyans face financial difficulty in January is because it comes immediately after the festive season. The numerous activities during the festive season such as the Christmas celebrations and New Year take a toll on an individual’s budget.
Consequently, January is a month that is also financially demanding especially the back-to-school rush and fees burden that comes with it. Without a plan for the first month of the year, many Kenyans find it rough, starting off on the wrong foot.
However, there are tips Kenyans can use to save money during the festive season and avoid the harsh economic times of January. Let’s look at some of those smart tips:
Budget for the Festive Season
According to a survey released by Viffa Consult on December 2, it was revealed that the majority of Kenyans will spend Ksh5,000 and below during the Christmas holiday.
On many occasions, people experience financial struggles after Christmas celebrations because they failed to work with a budget to guide their expenditure.
Being a period that is financially demanding, Kenyans are often advised to plan on how much they will spend on various activities during the holiday. Having a budget is important because it sets your expenditure limits.
Have a List of January Needs
The second tip on how to save for January is to have a list of all the financial obligations they are required to fulfill in January such as rent, school fees, transport to work among others. Have these needs in their order of priority so that you spend on what is necessary.
By having an approximation of the amount that you need in January, you will save according to the priority attached to each of the listed financial demands.
Having this list of obligations also makes an individual think critically of where they will be able to get finances to meet them. Such a list will also help you eliminate wastage and impulse expenditure.
Moderate Your Spending
During the festive season, people tend to be extravagant. Just as it is important to enjoy the festive season with family and friends, it is equally important to cut unnecessary expenditure during the holiday.
Some of the commodities Kenyans spend on excessively include food items and entertainment items. At times, food goes to waste because of the many options that are available during Christmas and new year celebrations.
For example, instead of purchasing foodstuffs that have been overpriced one can go for alternative options that serve the same purpose.
Have a Savings Plan
Having a savings plan is another method through which Kenyans can save for January. This can be done throughout the year or during the festive period.
Just as people save to purchase household items that they love such as electronics and furniture, having a savings plan for the first month of the year is equally important. This can be done through mobile platforms that have a savings plan, bank’s savings account, or the traditional method of having a savings box.
Depending on what you have, any amount as little as Ksh10 can come in handy during January. The good thing with having a saving plan is also the flexibility that comes with it. For example, somebody can save daily, weekly, or monthly.
However, you must be disciplined in order for this method to work for you and your family.
