Staying Out of Personal Debt

By Wisdom Kwame Nuworkpor FCCA, ICA, MBA

It is that time of the year again when personal expenditure for most people exceeds income for the period.  Whilst this is understandable giving that we are in the festive period, it is important to remember that irrespective of the amount of money you earn, if your expenditure exceeds your income, you will end up in debt.  

My advice to you during this period is to have a scale of preference (a list of items you intend to buy and a list of people you intend to buy these items for).  Below are simple decisions you can make to ensure that you stay within your budget:

1. Avoid uncontrolled spending - Operate within your list.  Be mindful of the numerous Christmas offers and stay clear. Only take advantage of offers if the items being offered are within your list.

2. You may also want to avoid using your credit card and rather spend on your debit card.  If you have to use your credit card, remember to set spending thresholds on the card.  This will allow your bank or card company to send you alerts either by email or SMS once the thresholds have been breached.

3. Do not allow your peers to influence your spending.  Don't just buy items because your peers are buying same.  Buy things because you really need them and indeed, they appear on your list.

4. Do not attend events simply because they have been heavily advertised or because all your friends are attending.  Attend only events you have planned for which you have indeed budgeted for.

5. Cut down on drinking alcohol.  Remember alcohol ceases to be a beverage once your intention is to get high.  It becomes a drug thereon.  Be guided.

6. If you are a man of faith, this is the time to spend more time with your creator or maker for direction into the new year.  Pray more and study your bible more.

Friends, I felt I should share these few lines with you so you don't enter the new year with unnecessary debt.

May I use this opportunity to wish you all a Merry Christmas and Prosperous new year.