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How to Manage Your Finances Responsibly This December

by Roveen Anyango
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The festive times are here with us again and you know what that means? All financial sense is thrown out of the window! In all seriousness though, the end-year festive season is one that lends itself generously to overspending and financial irresponsibility.

But, it does not need to be like that. In fact, you can use the festive season to organize your finances such that you do not suffer when post-festivities duties come knocking. Here is how to get through this period responsibly.

Plan for the worst

This might sound like you are expecting bad thing to happen but it is what we call foresight. Before getting yourself roped up in the festivities, ensure that you are well set in the event that things don’t go according to plan.

So, this means setting aside money that should be used specifically in the event of an emergency during the festivities. In the event that no emergency occurs during the festivities, this money can then be used after the festivities to settle bills and other miscellaneous costs.


This sound similar to planning for the worst, but let me explain. Creating a budget means setting aside a specific amount of cash for particular activities. So, this means setting aside cash for partying, buying gifts, travelling or doing any other activities over the period.

So, budgeting involves you setting aside money that you will actually use but capping your spending on that activity so that you don’t overspend. Any leftovers from your budgeted cash can then go to your emergency savings or whatever else you choose.

Don’t buy on credit

Spending money on credit often seems like a good idea. This is even better when you have a good credit score and thus, qualify for higher credit. It will seem as though money is in abundant supply and not likely to end any time soon. Except, it is credit, and you will need to pay all that money back in future.

So, to avoid crippling debts over the new year, spend what you have in the first place. So, make payments in cash, check or debit card. And if you must use credit, then try to use get reward points which can give you something in return.

While at it, also ensure that you clear any debts that you have had for this year so that you move over the new year with fewer debt baggage. Do all these and you won’t have a reason to complain once it’s all over.

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