Because it’s Christmas

ANOTHER Christmas is around the corner; another opportunity for folks to show how good a year they’ve had.

In the Philippines, September marks the beginning of Christmas. By that month, a lot of people are already planning in their mind about what to do. Based on my experience, this is also the time a lot of businesses are implementing the bulk of their target projects for the year.

This translates to spending according to the budget they have planned beginning of the year. They need to consume their budget so that the following year they can justify planning on a higher budget, specifically for marketing.

Individuals differ with companies during this season because we did not plan the budget early in the year and yet we spend just to celebrate; companies spend to get a return.

I still remember when, as still an employee, a colleague asked me if the bonus is already credited to our ATM account. When I asked for the reason, the reply was he already pawned his bonus earlier. Then he said, it is ok. It is time to celebrate because it’s Christmas.

Because it’s Christmas. This is always a justification by many to splurge whatever additional incentives received. For 20 years as a warehouse officer, I have always encountered workers who borrow money a day after receiving their 13th month pay and SL/ VL cash benefits. Every time I ask what happened, the usual reason is that because it is Christmas, their wives spent all their monies to buy expensive food and gifts for their children.

Below are some more expenses people incur, just because it’s Christmas:

■ Partying with friends. Since Christmas comes once a year and people have lots of cash to spend, they feel they need to be rewarded so they go into a partying mode. They spend recklessly as if there is no tomorrow. They think the bonus they received is free money (when in fact it is not free money). They feel it is easier to spend it than their salary. Try asking one which is easier to spend, salary or bonus? For sure the answer will be bonus.

■ Buying gifts. Christmas is a season of giving. With the incentives they have, this is what they see as the perfect time to buy gifts for friends and loved ones. In effect, without checking their December finances, they go into January broke because the money they have did not make it into the New Year.

■ Have a vacation. December is the month where a lot of people are in the fun mode. In the workplace, there is not much work to do since all companies do not have business activities anymore. For this reason, we see a lot of people travel (domestic or international). It is their way to relax and reward themselves for the whole year of working.

■ Christmas is for children. Too often, it has been said that Christmas is for children. The children refer not only to our own but to the children of relatives or even close friends for whom we drain our pockets to buy them something to give joy to them. But there’s also a child in some adults. And that is what makes Christmas spending very stressful.

Because it’s Christmas, isn’t it good to think that we will still have more Christmases to prepare for? By not preparing for the future Christmases, we will never be as happy as we are now. Prepare by spending wisely our money this Christmas by:

■ Buying protection. As we have our extra monies, it is time to think of protecting our money. As we are all humans, we are prone to illnesses and death and both will definitely drain our pockets. By buying insurance, we are buying our protection, which will help preserve our money that we need as long as we are alive. It would not be a good scenario to see us to outlive our money.

■ Buying assets. Buying assets means that in the future, even if we are no longer employed, we will still be able to receive income as if we are still working. Remember that as job provides income, it is not permanent. One day, we will all graduate from employment but still with expenses, Christmas spending included. With assets providing passive income, we can afford to party with friends, buy gift for friends and even go to vacation stress-free.

■ Spending less. By spending less, we can afford to buy our assets and protection. Spending less does not mean limiting the purchase. It means buying the same but on lesser price. The best practices are: make a list and check it twice; know your limit/budget; buy local (it is much cheaper); buy from wet markets or ukay-ukay; and, best if possible, give home-made gifts or even recycle old gifts.

So this Christmas season, think first before spending and start building for your future Christmas celebrations.

Merry Christmas!