Around this time, salaried employees have most likely received a windfall in the form of the 13th month pay, and if you’re luckier, a Christmas bonus, profit sharing, and other cash incentives—all of which make you feel cash-rich.
Happily coinciding with what seems to be your increased spending capacity are lots of sales and bazaars, running non-stop just about everywhere you look. On top of these is the general feeling of festivity and generosity that is just so pervasive, with people lugging gaily wrapped packages and parties ongoing non-stop. All these can make you forget about your budget and spending plans, and potentially set you back in meeting your financial goals.
Since temptations lurk just about everywhere, and not just during the Christmas season, it helps to be prepared to deal with these more responsibly.
Here are seven tips to help you deal with those temptations that can get in the way of your financial well-being.
1. Know thyself.
Knowing your weaknesses and trigger points is the most important step in fighting temptation. Some of us shop when we are emotional, tired, or angry at someone. Others react to advertisements or are easily swayed by sweet-talking salespersons. Many find themselves buying things they do not need, often mindlessly. Knowing what tempts you, and what makes you break your plans, will prepare you mentally to avoid these pitfalls and keep you from putting yourself in a spot that you cannot get out of easily.
2. Set a budget.
Having a budget will help you keep spending in track. Set a specific amount (either in peso terms or as a percentage of your income) for everything—for the household, for entertainment, for Christmas. Set aside an amount that is realistic for each one, based on your actual lifestyle and spending patterns. This will let you plan out expenses. When faced with temptation, you would know exactly how giving in to temptation would affect your budget for different areas.
3. Make checklists.
Complementing your budget, spending checklists are important. These lists should contain only the essentials and planned expenditures. Bring along these lists when you go shopping to ensure that you get only what you need. For Christmas, prepare a gift list to help organize your shopping and to keep you within your spending limits.
4. Stay away from malls and retail outlets.
Out of sight, out of mind works well when you are an insatiable shopper or find it very hard to resist buying once you hit stores. Many of us tend to go to malls to meet up with people or to dine out, and end up buying stuff because the in-store advertising and shopping bug are just too hard to resist. Meet your friends elsewhere such as someone’s home or a coffee shop in the neighborhood. Dine in areas which are not located in malls or retail strips. If a trip to the mall is unavoidable, then don’t loiter around—finish your business and get out without window shopping.
5. Leave your cards at home.
If you are an impulsive shopper, staying on cash mode is an effective way to resist temptation. When you do not have your credit card and ATM card to whip out, you will be left with only the money in your wallet to spend, forcing you to stay on budget. This is not to say that you should throw away your ATM card and credit card; on the contrary, they are very helpful financial tools when used wisely. Not carrying them around when you are feeling vulnerable, though, allows you to think twice about a purchase and stops impulse purchases.
6. Remind yourself of trade-offs.
When you’re about to fall into temptation, think of what it means to you in real terms. For instance, getting this glitzy smartphone means I will not be able to come up with the condominium down payment in six months. Framing your expense within your personal plans will help you determine if it is worth giving in to this temptation, or if you’re better off walking away.
7. Go for other activities.
Spending can be therapeutic and entertaining to many of us, but it is not meant to be so. Distract yourself by putting time into other activities—an afternoon chatting with friends, bonding with siblings and relatives at a park or someone’s house, reading good books at home. Even better yet, pay a visit to or volunteer to help out in a charitable institution (orphanages, centers and schools for the marginalized)—you’ll find these very fulfilling and will even let you touch the lives of other people.
---
Grow Your Money is an editorial partnership between ABS-CBNnews.com and Citi Philippines to promote financial education and provide helpful information to Filipinos on how to better manage their personal finances.
Visit www.citibank.com.ph for more information.
source: www.abs-cbnnews.com
