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Financial discipline during January

Publishing Date : 08 January, 2018

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It is that time of the year again where it becomes (now more than ever) evident that indeed money is an emotional drug. As the spirit of giving ignites that of spending, the festive season has come and gone, and we are now to suffer the financial consequences after the thrill has died down and we see the beginning of a new month most of us dread, January.

As featured on weekly radio shows on Gabz-fm, Key Wealth has consistently put in significant attempts to instil and ignite the culture of financial discipline, especially during the festive season. Financial advisors at Key Wealth (a local Motswana-founded financial and wealth creation company) have highlighted in their recent interviews that, like any other month, planning prior to spending is critical.

In an economy such as that of Botswana, an individual needs to be able to determine that which they want vs that which they need. Not only does this ease decision making but this increases the quality of financial decisions made. In fact, understanding the psychology of spending goes on to alert those who care about creating and maintaining their wealth to be conversant about what to avoid and what to be aware of, in order to escape falling victim to strategies that retail stores use to lure consumers into buying things that they did not plan for. The aim is not to be stingy in a season that embraces the gift of giving, but rather to allocate all necessary spending to satisfy prioritised obligations before luxury spending.

It is this very reason why one needs to be acquainted this festive season with skills to perfect and sharpen, in preparation for a healthy financial recovery post the festive season. A common habit most of us get engulfed by is that which exaggerates the need for excessive spending to put the year to an end ‘in style’, with the mentality that we are closing a chapter that demands retail therapy, binge indulgence and trips that were not budgeted for. As an individual, one needs to be able to introspect on a monthly basis and reward themselves accordingly where necessary.

This allows for considerate and moderate spending at the end of the year, that guards from aggregate spending especially with the influence of festive specials and virtual discounts. In this manner, one is able to plan sensibly & master the psychology of spending as a consumer.

Insightfully, as much as there is a lot to look out for as a consumer during the festive season, it is imperative to challenge common habits and do what others won’t do today, so that you can enjoy what others won’t tomorrow. How? In a market congested with consumers, position yourself as a seller by utilising The FRALANA principle that encourages one to be at collection points in their journey to creating wealth.

The Principle (e – s + r = mm), strives to empower individuals to fix their formula, such that they are able to assume the position of “someone (s) who provides resources (r) for everyone (e) and therefore will make money (mm)”. Not only does this ignite a receptive mind-set for opportunities, it promotes an entrepreneurial spirit that can slowly dissolve unemployment rates. In this very aspect, it is fundamental to take advantage of the festive spending by selling something that will improve your financial stance this December, and henceforth.

Although most may be reluctant to be on the opposite end and rather be consumers, social status may have a great impact on this choice. Individuals who seek to become wealth creators try to gravitate away from being status slaves, hence their critical understanding that living beyond your means may leave your peers impressed while you remain depressed by owing everything, as they allow themselves to regain control of their money and not have money control them. If anything, one needs to be able to create multiple streams of income to sustain a lifestyle that they wish for.

The pressing need for Batswana to regain consciousness regarding their finances is increasingly necessary to catalyse their control over money and how it works, to be able to overcome financial inconsistencies. Therefore, in this festive season, one needs to remember to plan well for the long month of January by taking care of their needs and spend for December afterwards.

This way, the aftermath of the festive season doesn’t defeat one as much with prior planning. Even when spending, be sure to use cash rather than opting to swipe (as this psychologically gets one to spend more). Always keep in mind that spending should be mostly for the items you need, not those that are on special, as commonly we purchase blindly to ‘bargain through specials and discounts’.



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