How Overspending Can Be Avoided When Extra Money Comes

By:  Gilbert M. Forbes
Financial Wellness, Stewardship Advocate
DepEd CALABARZON

Christmas Season is coming too fast once ber-months is around.  And this month of November, most of our employees or workers in the government sector are starting to receive their bonuses.

Once, we receive additional money, we begin to think of things to buy e.g., new clothes, gadgets, We even justify that it is needed, let say for instance, the need for a heater or a replacement to an aging cellphone.  Until, we just wake-up that none is left already.  Worst case scenario is to be in a budget dilemma because we forgot to buy things that are necessary like the food on the table for Christmas and New Year.  For sure, we will resort to credit or debt which of all the things, should not have happen.

This could be avoided if we will do the following:

1. Budget and carefully plan your expenses.  In your budget, include all your payables and irregular expenses for at least three to five months. Think many times before buying some thing by asking, is it really needed? Is there no other alternative but to buy it?  What will be its effect to my general finances or cash flow?
2. Save It All.  Correct, if you are not in a tight budget, save it all.  Just get the budget for Christmas to your existing irregular expense account savings.  Be sure that what you will take is only the amount budgeted and actually allotted for it.  Don't over-spend, otherwise, your other irregular expense needs in the future could be affected badly and so your monthly cash flow or finances.
3. Invest.  You may get an additional insurance protection if your current protection has not yet reached the suggested minimum.  Or you can get additional health insurance apart from your PHILHEALTH hence it is not usually enough to cover hospital bills whenever ourselves or any member of the family got confined.  The bigger the coverage, the better.

Let us always remember that all financial benefits we regularly receive is not part of our salary and so not part of the so called active income that we are suppose to spent to make a living.  Financial literacy experts are constant and united on their suggestions that it should not be spent, instead save and later make it grow.

After all, delayed gratification today, is worth a thousand joy and peace of mind. We are to choose. For inspirations and increased motivation to start your financial wellness journey. You may also like to attend our free virtual seminars via zoom by registering at  https://402183ph.imgcorp.com/attendance, https://402183ph.imgcorp.com/home/workshop