The Yuletide season, not only ushers in the much awaited new year, but for most Nigerians, it’s a period of dryness, low cash or virtually empty pockets. January is the first month of the year and has become the most dreaded month for people when it comes to availability of cash. Is this just a myth surrounding the month of January? Or are most Nigerians always really broke in January? Or there are actually people who learn to manage their finances well and live effortlessly well in January?
Well, situations across town shows that there is an iota of truth in this assertion. People actually go totally broke in January and these are for several reasons, most of them avoidable ones.
Here are 5 good reasons why people go broke in January;
1) Over-spending during the festive period: Lots of people tend to go over the board in a bid to satisfy their cravings in the festive period. Everyone gets into the mad rush of buying new dresses for themselves and their kids, some change homes, appliances, gadgets, phones etc
2) Promos by online sites; The reduced price promos on most sites in December added to the low cash problem in January. Everyone was in a wild rush to acquire one new gadget and home essential or the other. The low price promo encouraged people to buy more. Some must have even dipped hands into their emergency savings to buy choice things.
3) Travels and Tours; Most people who live far away from home love to travel during the festive period with their whole family. However, the last xmas witnessed scarcity of fuel, thus transport fares were exorbitant. As a result, most people spent more than budgeted
4) Excessive Partying and frivolous spending; The yuletide is a period when people engage in excessive partying and visit the movies to watch latest Nigerian box office hits, not just alone but with several cousins who are visiting. This inadvertently sucks off people’s cash and they hardly realise it on time.
5) New Investments; People make new investments in their businesses in January. They have more commitments which leaves them cash-strapped.
These 5 points are by no means exhaustible but those are some of the genuine and un-genuine reasons why people are broke in January. It would be better if people could fine-tune their spending and always prepare for the rainy day. After December, comes January and you must definitely pay the dues.