It is most annoying when we repeatedly fall into the same trap year-in-year-out.
When will we ever learn to prepare against January in December, or better still, right from October? I recollect a particular financial planning training programme I participated in two decades ago as a facilitator.
There was this particular session that I took on personal budgeting processes.
Oh, I love teaching anything and everything about budgets!
In that session during the practical session, I was going to help participants develop a simple budget for December.
In the organisation, they usually pay what is known as a 13th-month salary, which is a kind of yearly bonus given to all staff members.
I started by asking specific questions about what they intended to do with their 13th-month salary.
The participants rolled out many things, such as a particular clothing material they have been ‘eyeing’ for a while, holidays for the family, some trips to the village, and so many sundry things. I listened patiently to their desires, imputed them into the budget template, and heaved an uncomfortable sigh.
Their countenance changed, and they started wondering what they said wrongly.
I looked up and told them I still had a particular question.
They adjusted their seats.
I asked: “Does anyone of you have a child of school age?” I asked further if anyone of their wards attended public school? They answered in the affirmative. They have children of school age, and none attend public school.
To be sure I was not presumptuous, I also asked if they had paid in advance the school fees for the new term starting in January? The class became silent.
Some humming and feeling of guilt pervaded the atmosphere. Someone raised her hand. I beckoned to her to go ahead.
She narrated how in the previous year; a child of their neighbours was heard accusing the parents in mid-January that the parents did not love him. The child had claimed he was ‘chased’ out of class because the parents had not paid his school fees. The lady narrated how the family was bubbling with ‘enjoyment’ in the previous December period.
I could not ascertain if the story actually related to her family or if it was genuinely her neighbour.
However, based on her story, the class devised a slogan that day. “The same child that said you were the best in December may accuse you of not loving them in January if they experience a lack of paying school fees by the parents.”
From there, we determined what average school fees will be in January, thereby adjusting other expenses to accommodate that.
The next question I asked was if they all live in their houses and are free of paying rent or when their rent will be due if they pay yearly rent.
Another glooming season in the class again!
Again, we made a further adjustment to the budget.
Several other questions were asked. As we agreed on them, we adjusted the budget until we were best assured that we had taken adequate care of the typical ‘challenges’ of January that made it look like it has 70 to 90 days in it.
You will recall the song in the elementary school that “September, April, June, and November all have 30 days, while only February has 28 (29) days, while the rest are 31 days.”
Therefore, January, by that song, is one of the rest months; each has 31 days.
What are the lessons we are not learning?
1.We tend to overspend in December, sometimes on unnecessary things.
2. We hardly make any provision for January the following year.
3Even when we have more money in December, we still find it difficult to control our expenses.
4. Culturally, we wrongly compete for things that are of doubtful value.
5. Higher percentages of our December expenses are for excessive consumption-foods, drinks, clothing, and such things.
6.We mostly get paid earlier in December, which has become burdensome.
7. Excessive demands in December will usually translate to higher prices
8.And so many others that may be peculiar to each family, like vacations, etc.
While it may not be unreasonable to assume that some of the issues are not within the control of many individuals, I will unequivocally submit that there are instances of indulgences and outright indiscipline on the part of many of us.
The cultural pressures of what we must wear and eat during December may be difficult to dismiss.
However, it is also true that our communal giving during this period has created additional cultural burdens on many people. Those who are inclined to give to others are the most exploited as well during December.
We cannot necessarily blame the economic situation on this perennial circle of indecision at all. During economic buoyance, the story is as worse as during the period of scarcity.
Finally, are we ever willing to learn to start having a better January going forward?
• Oluwadele, PhD. is a Chartered Accountant, author, and Public Policy Analyst based in Canada. Email: bolutife.oluwadele@gmail.com
