A to Z of festivities: How to make merry and avoid January blues

The drum beats are growing increasingly louder. The jingle bells are beginning to tinkle. The year-end festive season is here.

The aroma of succulent goat meat, and soft freshly done chapati and all the delicacies that mark the season is already in the air. Revelry joints are lit up and waiting to entertain. The party is on.

But what’s the reason for the season and why do so many go off the rails only to have a January full of regrets? How can you make your experience better this festive season to come out the winner?

Personal Finance expert Waceke Nduati says that spending for instant gratification attracts strenuous debt in the future and should be avoided.

“Many of us take on debt, spending more or going on a holiday that we can’t afford and delude ourselves with the notion that some unspecified event will come around in the New Year to sort out our financial situation  but it never does,” she says.

Lifestyle brings you tips that will help to get you through the festive season with no regrets.

And remember, says NCCK General Secretary Peter Karanja, what the reason for the season is; “Jesus made it clear that we give to Him by giving to others — feeding the poor, clothing the naked, visiting the sick and imprisoned.” 

Avoid borrowing to spend during the festive season

It may seem like an obvious one to start with but far too many people in Kenya have to worry about debt on a daily basis. Personal and household loans constitute 26 per cent of total non-performing loans, according to the Central Bank of Kenya. 

Book early

It cannot be said too many times; if you want cheaper flights, bus fares or holiday packages or hotel rooms, book as early as possible. 

Cook at home

According to the International Hotel and Restaurant Association, a well-run fine dining restaurant operates at 28-32 per cent food cost. That means that for Sh1,000 you spend at a restaurant, they only spent between Sh280-320 on the food you will eat. Of the remaining Sh680-720, between Sh200-400 will be spent on things like rent and overhead costs. The remaining is profit.

So while it seems more difficult than eating out considering the amount of work required to put up a simple meal on the table, mass produced home cooked food is far cheaper than eating out. 

Drink driving is a NO-NO

Festive seasons have always been associated with an increase in road accidents.

“This increase is mainly attributed to human error and in particular speeding over the limit, reckless and dangerous driving and drink-driving,” says the National Transport and Safety Authority Director-General Francis Meja.

According to the association, the number of road fatalities has increased by 3.8 per cent this year compared to 2014 and part of it is attributable to drink-driving.

“This is not just with motorists. Even with pedestrians themselves. Some of them drink and then stagger from one side of the road to another and, because judgement has been impaired, they are not able to see the speed of the vehicle and they get hit,” says Mr Meja while warning Kenyans to exercise caution if they want to see the New Year. 

Earn cashbacks

By the end of December last year, the combined unclaimed loyalty points for retail giants Nakumatt and Uchumi was reported to be Sh630 million. All the big four retail chains – Nakumatt, Tuskys, Naivas and Uchumi – offer loyalty points to customers who have loyalty cards on the basis of their purchase value. The points are later “redeemed” mostly as payment for shopping or other gifts in kind. 

Family first

If there is a reason why January is known as the divorce month, it is because people in unhappy relationships want to start the New Year with lesser problems, according to Dr Philomena Ndambuki, a psychologist and director of mentorship at Kenyatta University. “You convince yourself that it’s only right to give your kids one more holiday season with their family intact but most of the times if you spend most of the holiday season together, there is a chance you will end up changing your mind about the divorce,” she says.

“But if your relationship was intact and you spend most of the time in bars or travelling with your friends, you will start the new year with a lot of tension between you and your spouse,” she advises. 

Gift those you love but try to be frugal

Giving people gifts is one of the most wonderful traditions but when it becomes commercialised it turns expensive and strenuous.

“Five years from now people will remember the time you spent with them not what you bought them, so instead of going out of your way to impress people, try spending time with them or be economical if you must buy gifts,” says Ms Nduati. 

Have a realistic spending plan

By the start of this year, David Mwithiga had spent an unbudgeted Sh50,000 on two tablets, one for him and the other for his girlfriend.

“The Sh10,000 discount was huge and I thought it was a good offer,” he says.

An Ipsos Synovate poll last year said three out of every four Kenyans increased their discretionary spending. Mr James Njenga, a personal finance expert, says the best way to beat this type of spending is to create a realistic budget.

“While setting budgets, always start with good intentions, an unrealistic one can do more harm than good. Without a little wiggle room for last-minute purchases, you might get so frustrated that you just toss your budget out the window,” he says. 

Ignore the ‘SALE’ word

Ms Nduati observes that one of the best tricks to beating the festive season shopping spree is doing it before or after Christmas.

“A lot of prices are increased during Christmas due to demand. Remember, too, that the word ‘SALE’ is extremely relative and does not necessarily mean a cut in price that will never be available again. A sale is never a sale when you did not need the item in the first place.”  

Just say “no” to toy lust

Kids, especially from middle class families, make huge toy demands but if they still believe in Santa Claus, help them draft real-world wish lists. In their post-Santa years, set for them some financial boundaries and give them some choices. 

Keep a 30-day list

Francis Kinuthia, a mechanic in Nairobi, has devised a method he says has enabled him to save a lot of money that he thinks will also assist most Kenyans to fight off craving to make impulse purchases. “Whenever I see something on a shelf, let’s say an electronic gadget that I really want to buy, I walk in and enquire about its price but instead of buying, I note it down and tell myself I will revisit the idea after a month,” he says.

“In between I would be thinking if I really want to buy it or not and if the urge to buy it is still there after 30 days I buy it; but most often the urge would have disappeared by that time,” he advises. 

Left-overs

What would a holiday party be without them? Instead of throwing left-overs away, store the extras that you buy for use in future. Shop in such a way that you do not have large amounts of left-overs of highly perishable foods that would have to go to waste. You’d be raiding your own purse to feed the garbage can. 

Make use of the potluck method

To save the amount of money used for buying food when hosting her relatives for lunch during the festive season, Ms Mary Omari says she has already made them know in advance what they will be having for the main dish.

“I told them that I will appreciate help on the side dishes, drinks and spices. We are constantly discussing this and by the time Christmas arrives, everything will be set,” she says. 

No, no to impulse buying

“Look around and get the best deal,” says Ms Nduati, “and don’t succumb to emotional pressure if you can’t afford something.” 

Organise a home swap holiday

House swapping is a fantastic way to have a holiday for less instead of spending the period in expensive hotels. You will also get a much more authentic experience of the place that you are visiting. In developed countries websites like lovehomeswap.com help people to do it. In Kenya though you can try it with your relatives who live in other parts of the country different from yours. 

Plan how you will spend your time

How we spend our time is usually directly proportional to the amount of money we end up spending. Particularly after demands at work decrease from around mid next week. We start entertaining ourselves in various restaurants, pubs and spending can really go out of hand here when you are having a good time. Remember that January is only a fortnight away and you do not need to invite the blues. 

Question all purchases

Personal finance expert James Njenga advises families to go over the list of things they intend to buy at least twice before making a decision even for small purchases. “The best way to do this is together as a family instead of the parents doing it alone. You will never know, the kids may point out what is unnecessary or what is needed,” he says. 

Remember January does exist

And it is 31 days long. Plan what to do and stick to that plan after your pay hits the bank. “Though in December people are in denial about this, January comes around with its own bigger financial demands than most months,” Ms Nduati says. “Sit down now and calculate what you need for January, put those funds away in a separate account.”

“Do not leave them in the everyday transactional account you will be operating this season. This is the only way you will spare yourself the financial agonies that check in in January,” she advises. 

Set limits

Stanley Lwanga has for the last two festive seasons been running a separate bank account for the purpose and sets spending limits for each day of the season.

“For instance, I know how much money I will spend on refreshments on each particular day and when it runs out, I do not go back to the bank to withdraw more,” he says. 

Track your spending

Your budget will be useless if you do not effectively track your spending. Every two days, take a moment and record your expenditure on a note-book or on excel to help you keep track of your expenditure as the days move along. Mr Njenga says the best way to do this is to have a spreadsheet where every expense is entered and keeping all your receipts. 

Use cash

“If you know that you’ve had financial trouble after Christmas, do a cash-only Christmas,” says Clark Howard, in his book Get Clark Smart: The Ultimate Guide for the Savvy Consumer. He says, “People spend more when paying using credit cards and mobile money payment platforms without realising it as they charge a commission for every transaction plus a card motivates you to spend more because of the feeling of limitless spending that it gives you.”

He advises people to use cash for all non-bill spending such as fuelling, eating out and groceries. “Spending cash makes the spending more real, and there’s an added advantage of knowing when you’re out of cash, instead of spending more than you intended to.” 

Vehicle pool

Though the concept popular in developed countries is yet to catch up in Kenya, carpooling is said to reduce travel costs and the stress of driving if both of you have licences. Stress is a major cause of accidents on our roads. Carpoolworld.com, a Kenyan website that links drivers to other drivers travelling in the same direction, says carpooling in Kenya can get 128,275 cars off the road, cut carbon dioxide emissions by 654,463 metric tons, and reduce fuel consumption by 279,173,156 litres. 

Watch what you eat and drink

Dr Ndambuki says people should not forget that there are consequences for over-indulgence. “Like ostriches, people intentionally bury their heads in the sand during the festive season and fail to monitor their food and drink consumption on purpose just because everyone else is doing it,” she says. 

Xmas is not your birthday

The National Council of Churches of Kenya (NCCK) says materialism has made people forget that Christmas is meant to celebrate the birth of Jesus and instead indulge in overspending and overeating which leaves them exhausted at the end of the year.

“Jesus made it clear that we give to Him by giving to others — feeding the poor, clothing the naked, visiting the sick and imprisoned,” says The Rev Karanja. 

Yes to freebies

The best way to save money is to spend nothing at all, as Violet Juma says.

“I am always on the lookout for items given as free samples attached to products in the supermarket or vouchers given for free when you buy specific products,” she says. Such free items are always in plenty during the festive season and she says they do help to cut costs especially if you had intended to buy them. 

Zip it up

A research published in the UK’s Journal of the Royal Society of Medicine in 1999 likened the Christmas-New Year’s period to “a festival of fertility” because of the surge in sexual activity witnessed. In Nairobi, gynaecologist Fred Akonde says there are more enquiries about abortion in February.

The grim reality is that Kenya has the fourth highest prevalence of HIV/Aids in the world and, apart from putting pressure on the country’s health system, the financial pressure that comes with it both at a personal and national level is enormous.

“If you must do it, use a condom,” says the National Aids Control Council (NACC).