Valentine’s Day is finally here and as much as it is great to treat your special person with the finest gifts and extravagant romantic experiences, your heart should not be bigger than your budget can afford.
If you are increasingly struggling with financial anxiety, Valentine’s Day expectations may make it even worse. It’s easy to spend money you don’t currently have to buy gifts, or just to be done with the chaos of Valentine’s shopping. especially if you are relying on credit to make amends,
A survey done by Old Mutual in 2021 to determine the Savings and Investment behaviour of our working population, revealed that the majority of Namibians would turn to store credit, shop accounts, personal loans and bank credit cards for credit and debt.
Remember, taking the easy route now will prove to be far more stressful for you when your credit bills arrive. That’s why it is important to take some time to determine how much you can afford.
It is important to first, establish a budget that primarily takes care of your immediate expenses and existing bills. Don’t presume future income will cover your credit bills. We don’t know what the future holds - 2020 has proven that!
If your plan is to make Valentine’s Day extra special by celebrating it at your house with friends and family this year, you have to keep in mind that as much as experiences have a more lasting impact on the receiver than tangible items, the cost of hosting a fairly large group can be quite high.
Here are five simple tips to help you navigate Valentine’s Day shopping:
- Shop with a list. Why buy things I don’t truly need? Learn to differentiate between needs and wants.
- Visit various stores for price comparisons and look for special offers. Who says you have to buy new? Find deals at thrift stores, garage sales, Facebook Marketplace, etc.
- Avoid spontaneous spending on items for yourself that are non-essential while you are shopping for your special person.
- Don’t go into debt. If you can’t afford it, look for a cheaper option or leave it.
- Avoid comparing your situation with others; that leads to emotional spending. Advertising and social media posts can make you feel miserable for not ‘doing enough'.
Don’t forget, once Valentine’s Day fever has subsided, resentment can easily set in when you get calls from your debt collectors or your bank.
Contrary to common belief, money is not required to express love. There are many ways to show your loved ones that you care, by planning fun activities and gifts that don’t cost a lot. A debt-free Valentine’s Day is a gift for yourself and one that ultimately impacts your future positively.
Don’t let Valentine’s Day create a Red New Year! That is, avoid going into debt.
Old Mutual offers On The Money Financial Education workshops for institutions. Make an appointment at:
Tel: +264 (0)61 299 3945
Email: NamibiaTrainingHelpdesk@oldmutual.com