HOW TO AVOID THE JANUARY CASH-CRUNCH IN YOUR FAMILY
Pastor Bisi Adewale
To many people, January is the longest month with ‘62 days’ instead of 31. Many families experience the most difficulties during this month because January involves financial difficulties which are not usually experienced in any other month of the year.
Let us analyze the concept popularly known as ‘JCC’ (January Cash Crunch). There is absolutely no need for you and your family to suffer at any time of the year, January inclusive. You can consistently live in surplus.
CAUSES OF ‘JCC’
– Most organizations pay staff salary between 20th to 24th of December to enable their staff shop for Christmas.
– Most house rents have to be renewed in December.
– School fees are usually paid in the first or second week of the month of January.
– December involves a lot of travelling from cities to villages and vice versa.
– Due to the hustle bustle that characterizes December, there is a hike on transportation fares.
– The Christmas and New year celebrations in December create opportunities for people to spend a lot.
– The end of the year bonuses and ‘13th month’ salary paid by most employersgives people a false impression that they have an in exhaustive well of cash. This careless spending is what I term ‘rainfall spending’.
– Unwise people who spend lavishly so they can ‘outshine’ their peers, family, relatives, or even enemies are victims of JCC.
– Some men tend to womanize and get involved in immoralities during festive periods than other times. December, a period of festivities, encourages this which involves spending of money.
– Most women buy expensive clothes, shoes, bags and accessories in December, some of which the installment spans till April the following year.
– I have no clue as to why many people prefer to get married in December. The expenses incurred at this time are usually on the high side.
– Many people do not have any concrete plan. They spend anyhow during festivals for whatever reason. It is mostly a case of spend now and suffer later.
– Most people delay Christmas purchases till late in December when prices must have skyrocketed.
– As a show of love, many parents buy new clothes, shoes, toys, etc for their children this period, though at an expensive rates.
– Most people spend in December as if January will not come.
HOW TO DEAL WITH ‘JCC’
The truth is, you can live in January like any other month. You can live without being broke, once you understand what it takes to “tie” your money down.
1. Plan your Life. Whatdo you really want in the New Year?
Plan now. Much money without planning will make you spend endlessly and run into debt. Plan your life and live better.
2. Have a Budget.Based on your available income, draw a list of things you want to buy. Categorize them into NEEDS and WANTS or LUXURY, SHOW-OFF, NECESSITY. Go for only necessities and save the money you would have spent on luxury and show-off.
3. Spend Less. By all means, spend lesser than you would have spent.
4. No Show-Off. Are you buying that cloth to show your ‘enemy’ in the village that you have arrived’? Are you buying that car, wristwatch, television, handset, etc just to show people how wealthy you are? Anything you buy just to impress or hurt others is not for you, it is a show-off.
5. Pre-Festival Purchases. Buy everything you need long before festivities. My wife buys our children’s “Christmas clothes” in September, food stuffs in October and gifts we intend to give to our loved ones in November. With this, we are able to avoid the high prices of “rush-time purchases”.
6. Buy Later. There are things you can afford to buy later; avoid buying things during “rush hours”.
7. Remember January. As you are writing that cheque, paying that bill, withdrawing from that ATM, always remember J-A-N-U-A-R-Y.
8. No Unnecessary Travelling. Must you travel during the Christmas period? Why not before or after? Transportation fare increases during festivals and will always involve unnecessary spending.
9. Plan for School Fees. Plan for the payment of your children’s school fees. Some wise parents pay as soon as they collect their December salary. With this, they won’t spend the money during Christmas.
10.Use the Bank. Don’t bring all your money home, keep it in the bank. Avoid the temptation of withdrawing everything; it is like spending your blood if you do.
11.Control the ATM. Who is in charge? You or your ATM? Some people enjoy using the card and love the machine. I can count how many times I use the ATM because I don’t allow it to control me. I am in charge; it is just a card. Base your spending on your pocket, don’t rely on the ATM. If you can’t control the urge, give it to a trusted friend or mentor during this period.
12.By all means, spend below your means. Never spend above or within your means. Spend below your means. Yes. Spend lesser than you can afford, that is wisdom. That is the foundation of surplus and the mother of wealth. Be wise!
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