Nigerians and tourists alike, especially members of the country’s massive diaspora, descend on the megacity annually to visit family and friends and observe the holidays — and party. Never mind the recent state of emergency declared by the government last month over mass kidnappings in the north and centre of the country, or the brutal inflation that has squeezed the country for two years: in Lagos, the anchor of southern Nigeria and the nation’s economic capital, the music will be bumping and the drinks flowing. (Photo by OLYMPIA DE MAISMONT / AFP)
Detty December in Nigeria is a period when one spends a lot of money on foods, gifts, outings and travels.
Hence, by the time January rolls around, you are feeling the effects of financial stress to drained wallets and broken routines.
Recovering doesn’t have to be a painful process. With a few simple steps, you can reset your finances and start the new year on a fresher, healthier financial note.
Here are six practical ways to bounce back after a heavy December.
Create a January budget
Plan your spending for the month, allocating money for necessities, savings, and a small allowance for treats. A clear budget helps prevent post-holiday overspending from continuing into the new year.
Take a full stock of your finances
Check your credit cards, bank accounts, and outstanding bills before continuing. The first step to rehabilitation is understanding exactly how much you spent and what you owe.
Prioritize essential expenses
Keep your needs and wants separate. Prioritize rent, bills, food, and transportation. Postpone or reduce non-essential expenditures until your finances stabilize.
Limit credit use
Avoid using credit cards or taking loans to cover holiday overspending. Focus on paying off what you owe first, and only use credit if absolutely necessary.
Find small ways to earn extra cash
You can replenish your funds more quickly by doing freelance work, selling leftover stuff, or lending a skill. When recovering from overspending, even little sources of money have a discernible impact.
Build a mini-emergency fund
Start setting aside a small amount each month to cover upcoming holidays once you’ve stabilized. The stress of another time of high spending can be avoided with even a tiny buffer.
Disclaimer
Comments expressed here do not reflect the opinions of Vanguard newspapers or any employee thereof.