In last week’s edition, I tried to remind you that Christmas is approaching and I hope I succeeded in drawing your attention to it.
Now, in this week’s edition, I am going to attempt to answer this question: Christmas is approaTRENDching, and so what? Yes, and so what?
There is a lot, a lot to consider when we hit the festive season, like where we are.
To provide a much deeper answer to the question, I am going to rely heavily on the December 24, 2022, and December 14, 2024, editions of this column, since they contain some of the key facts we need to know about why the festive cheer could all but bring New Year sadness if you don’t stay on the straight and narrow during this period.
First, let’s consider the targeted sales and marketing campaigns that could arouse your interest in buying products you may not even need in the first place.
From “everything must go” to “special Christmas offers” and other so-called hefty discounts on goods (perhaps services too), high street and online shops are hoping to make the most of the festive season. And that could be at your expense!
Christmas is always a period characterised by low or high tempo in economic activity and spending, depending on which side of the fence you sit. To the vendor, high-tempo sales and marketing initiatives would help close sales gaps. So, everything is done to secure sales deals and more.
You must exercise caution and always buy or limit your purchases to the size of your purse. In other words, your disposable income must determine what you buy.
That is the ideal situation, though. Of course, in this fast-paced world of high consumerism, the reality is always different!
And that is my worry. There is enough evidence that people are calculating their disposable incomes not based on what they have earned through their hard work, but what they could secure from other sources, too, including loans from financial institutions.
Let me explain this point further. Because of the availability of consumer credit facilities through banks and other financial institutions, there is always the tendency to secure a product on credit, even when you don’t have the means to pay back what you have borrowed.
Also, some vendors and high street shops offer credit facilities through marketing schemes such as “buy-now-pay-later”. The tendency to fall for these schemes is high and the tendency to fall into debt through these schemes is also high.
Buying now and paying later means you will still pay! Not a free lunch at all.
So, beware. Before you fall into a high-tempo Christmas mood, consider the affordability test. You must be limited to the current purse size and not to what you will be able to secure in the future.
Once you are committed to strong spending control, you will control everything else in your life.
That is the reality of the day because we often fail to appreciate how falling into debt could damage everything we have, including our health.
Money has made the world what it is today, good and bad. And the same money can make you happy or sad! With money, some even experience happiness and sadness at the same time! How ironic.
Now, take this basic reflective test and see whether you will connect with what I am trying to explain. Let’s go! Have you ever wondered why you wake up in the morning, even when you feel weak, to go to work? Or what do you think will happen if you don’t work at all?
Well, I am sure the last question will generate a lot of interesting answers because there are people actively seeking employment but cannot find the right fit and, are supported by loved ones to live day by day. It’s all well and good.
If you do the reflection well, it should reveal to you that we get involved in economic activities to generate some money to cover the necessities of life, which are food, clothing, and shelter.
Once we don’t have these basics covered, we feel completely naked in all ways of life—unable to eat right, clothe ourselves and have a good roof over our head.
So, money cannot and should not be the root of evil, should it? Certainly not, but it does, in some cases. I have read and seen how people addicted to some hard drugs will rob and sometimes even kill to feed their habit. In this case, the means to feed the habit was money, but the root cause was the addiction and not the money.
Money was only the medium of exchange through which the drugs could be obtained. This means that the love for money is not bad, but how you try to secure it is where the problem lies. It is bad to kill for money, for instance.
You may use fair and foul means, including corruption, to make money. That is bad. But do you know that you can also become that “unconscious” corrupt person? Yes, it is possible. Here, too, let’s consider an analogy.
Assuming you became attracted to one of those buy-now-pay-later schemes and you decided to sign on the dotted line to have the product.
As this impulse-buying was not based on thorough analysis, you run into trouble with the agreed payment plan. You had the best intentions, but reality has exposed your fragile financial position.
Okay, to be continued because there is a lot more we can discuss on this topic.
botabil@gmail.com
