Struggling to manage your finances during festive season? Here's what experts advise

The festive season is around the corner, with less than 10 days left until Christmas and about 15 days to enter 2025. Christmas lights are lighting up the city and businesses stocking up for what is promising to be a merry season for friends and families. With Rwanda Development Board (RDB) announcing an extension of operating hours for hospitality activities for the forthcoming festive season, many are anticipating a fun end of year and to usher in the new one in style. The government took a step to ease guidelines to close bars, restaurants, hotels, nightclubs, and private events on weekdays and over the weekend, to allow Rwandans to fully celebrate the festive season. As a tradition, the festive season comes with merry-making, shopping for Christmas and New Year’s, for those with the means, vacations, holidays, treats, outings with friends and family, visiting relatives and many more. Joselyne Muberarugo, a cloth dealer in the City of Kigali, says there is already a surge in demand for clothes, as people shop for what to wear during the festive season. “We have started to see many customers coming to buy dresses, shirts, trousers and suits, in preparation for the festive season. I would say the past few months haven’t been good for business,” “We are hoping that at least this month can help us to stabilise and sell more,” she says, adding that their sales normally quadruple during the festive season. However, with ongoing inflation and increasing commodity prices, it is advised that unnecessary spending is tamed because after all, life continues after the festive season. The reason January is considered a hard month is because most people deplete their pockets, all in the name of celebrating, spending their salaries and savings within a short time and when the new year sets in, many will find themselves struggling. ALSO READ: Tips for a budget-friendly festive season Financial experts say cautious spending and planning one’s expenditure for the festive season ahead of time, can go a long way in minimizing the impact. While it's normal to feel the urge to spend more and splash on family and friends during the holidays, there are ways to celebrate without overspending or depleting your savings for short-lived merrymaking. Among the tips recommended by experts to manage your finances during the festive season, include setting a budget, based on how much you can afford to spend on gifts, food, travel, and entertainment. Make sure your budget aligns with your income and expenses. An expert’s view Jean Claude Rwubahuka, a business development analyst and financial advisor says that while the festive season is undoubtedly a time of joy and celebration, it is also a major trigger for people to overspend. He says that managing the festive season expenditure wisely can have a significant impact on personal and financial stability. “It goes beyond the personal perspective, and touches the entire family and even the nation. The first thing is to, consider, in the area of personal finances, is to have a budget, whether personal or family budget,” Rwubahuka says one has to plan and budget maybe six months earlier but it has to be a realistic budget, which can include unexpected expenses, whether to do with gifts, travel, food and entertainment, and you stick to it, along with your to-do list. “This will ensure that people don't overspend or dip into savings meant for long-term goals,” he says. Rwubahuka says that it is key for people to prioritise needs over wants, which can help to differentiate between necessary expenses and luxury splurges. “For instance, instead of buying overly expensive gifts, consider thoughtful yet affordable options,” he says. “What other people call January blues caused by financial shortfalls after the celebrations,” he explains. Similarly, it is recommended that you track your spending, including purchases and bills paid throughout the season to stay within your budget. This will also help you to know whether you are overspending or within range. Plan what to spend Planning ahead is also another wise tip, meaning that by now you should know what is available or what will be available to spend during Christmas and the New Year, including what you want to spend on gifts and giveaways. While it is considerate to think of others and give out gifts, this shouldn’t come at the expense of important things such as school fees, rent or other bills that need to be cleared before the end of the year. If you are feeling generous, consider sharing with those who are less privileged or are in need, rather than splashing or sharing gifts with people who are not lacking anything, unless it is an exchange. Rwubahuka says the festive season is about memorable experiences not how much money one spent or how expensive that dinner was. Thinking about experiences that create lasting memories instead of just buying expensive gifts will save you a lot of money. The financial expert says that it is not wise to take a loan or credit card to pay for festive season expenses. It is not only unnecessary but it also leaves you with a high-interest debt to pay over the coming year as well as financial distress. ALSO READ: How to have fun during the festive season without breaking the bank “You know, sometimes people can even borrow to the extent of using their telephones to borrow from telecom companies, which is risky because you will have to pay back that money at a cost,” he says. Rwubahuka says it is unnecessary and these options can be left for important future needs and expenses, and instead plan carefully the December earnings to meet the needs of the festive season. It is also advised that people avoid falling for Christmas promos and discounts as most of the time they are just psychological tricks to encourage one to overspend. ‘70 per cent off’, ‘buy one, get two’ and ‘we have slashed prices by half’ are common catch phrases used during the festive season. Rwubahuka says that most pricing schemes and holiday-themed displays don’t come with a discount, but they sound good enough to encourage you to buy or subscribe to a service. Financial experts warn against extravagance and impulse buying during this period, arguing that spending money saved for the past 12 months within a week or even a few days is a recipe for financial hardships in the New Year. Some people get carried away and recklessly spend money meant to cater for emergencies and other important bills during the festive season -some doing it for the cameras and social media but later pay the price. It is key to prioritise the needs, including paying rent, water, electricity and other monthly bills that can’t be postponed, so that they don’t pile up and become unmanageable. Spending more than you earn – a recipe for disaster Economist Teddy Kaberuka says it is important for people to watch their expenditure during the festive season, to avoid a situation where they find themselves short handed in the weeks that follow the festive season. “During the festive season, people are tempted to actually spend more than they make. But again, that's what festive means. It means people have to celebrate and by celebrating, people have to spend,” “However, some people will not spend wisely and after the festive season, it is completely chaotic. They spend even what they could have saved for future use. Overall, I think it requires discipline and spending wisely,” Kaberuka says people need to beware that after the festive season they will still need to spend and it is key to eliminate excess expenditure and consumption. Spending during the festive season should be well-thought, starting with planning finances before the festive period, to avoid getting into financial problems because human needs never stop. Kaberuka says knowing how much you can spend vis a vis what you will require to survive after the festive season is important. Minimise partying With the government easing on closing hours and allowing events to happen with limited restrictions, chances are, people will have many options of what to do. From parties to concerts and hangouts, there will be a lot of activities, which will require one to choose which ones to attend or to pass, to avoid binge partying, which is also a one-way route to overspending. Partying responsibly means drinking less and having enough rest to do other things even during the festive season. Remember it is a holiday but for many, work carries on. With bars and nightclubs now allowed to operate until 2:00 a.m. from Monday to Thursday and all night on Fridays, weekends, and public holidays, many people will find themselves staying out late, drinking and partying. RDB emphasized that businesses must self-regulate, adding that there will be enforcement measures which will ensure compliance, holding violators accountable, with a call to people to also celebrate responsibly. Making the most of the season There are many things’ people can do to create memorable experiences during the festive season without spending a lot, such as family activities, including games, making their own Christmas traditions, such as homemade art, DIY photo books, or cards. Spending time with loved ones, including family and friends, can be more rewarding yet less costly. The festive season is time to bond, talk, interact, laugh and share memories. There is no price you can attach to that. Decorate and cook out together as a family -it can be rewarding in many ways. Traditionally, Christmas was for cooking and eating sumptuous meals at home, not food cooked by a chef who missed celebrating with his or her own family. For some, the festive season is time to rewind and reflect on the deeper meaning of the season. It is time to break away from the noise, meditate and reset. If you do this without feeling like you are depriving yourself, it will cost you less. For Christians, traditionally, the festive season, particularly, Christmas day, is about going to church. Even people who don’t normally go to church find time during the year, find time to go to church on Christmas. Most churches have activities during the festive season, which are mostly free, such as Christmas carols in different churches, Christmas Cantata at Christian Life Assembly (CLA) and performances by different choirs, including Chorale de Kigali. Watching Christmas movies and sports Since the festive season brings people together, it is a good time to catch a movie together or series. Whether it is at home or in a cinema, watching movies and other shows you missed during the festive season is one of the ways to make it less costly. The festive season is also littered with a lot of sporting activities, whether it is on TV or live games in stadiums. For sports lovers, catch up with your favourite leagues and competitions, at home or out with others. Taking walks/runs Since most people have time to themselves during the festive season, it is time to binge on long walks, alone or with others, as well as runs, to keep physically fit during the festive season. With food and drinks in the mix, chances of piling up weight during the festive season can be high, but for others, there is enough time to pursue fitness goals. Check out Nyandungu Eco Park, the Imbuga Car Free Zone in town and other places you haven’t had a chance to visit. ALSO READ: How to spend after festive season spending spree With many clean and safe to walk during day and night, spiced up by Christmas lights, walks are a perfect alternative to spend time during the festive season. Looking at the lights in the night can be therapeutic and boost your festive mood. For those with children, outdoor activities can help to keep them busy, whether it is a visit to Fazenda Sengha on Mount Kigali or any play park where they can meet and connect with other children. Other sporting activities can include cycling, playing football and indoor games such as chess and scrabble, which keep the mind focused and alert. Go to the village Traditionally, Rwandans were known to go back to their villages to celebrate with their loved ones, using the opportunity to reconnect with their roots, but the culture has faded over the years. However, celebrating Christmas in the village can be truly fulfilling for those who still have a place to call their village. Connecting with old friends and relatives and enjoying the small things of village life can be a great experience and less expensive. Children will love it too.

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Struggling to manage your finances during festive season? Here's what experts advise