Christmas and the economic meltdown

Dec 21, 2008 Peeping Tom

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Peter R. Ramsaroop, MBA
Chairman, Vision Guyana

INTRODUCTION
It was the world food crisis earlier in the year and we heard talks about all kinds of plans for food security in the region. Then suddenly food security fell off the radar because by mid-October, the “financial tsunami” started to engulf the industrial world after major seismic currents occasioned monumental shifts in confidence in the US economy.

So what has all of this has to do with Christmas in Guyana?
Here’s what. Most economic experts agree that the current recession the world is slowly moving into will be “long and deep”; that the global economy will only begin to see some revival by 2010 and that most developed countries will see no economic gain until 2011 or 2012. Well we can surely see what this means for an economy that receives remittances as a significant proportion of its GDP.

The holiday season is usually the best time for business. Some businessmen have said that without the Christmas season shopping, their businesses would not have been able to survive.

Christmas spending brings most businesses out of the ‘red’. Spending is going to soar as we get closer to Christmas. There is absolutely no doubt that we will want to let our children enjoy a glorious Guyanese Christmas; enjoying good food in abundance, toys and other gifts.

For the adults: gifts such as clothing, jewelry and so. And not forgetting the Old Year’s Night “get ups”. Of course for those who have huge unexplained levels of liquidity, the foreign brand name food, drinks, clothing and so on will be appropriate.

THE IMPACT
But unlike our very affluent counterparts, most Guyanese will not be positioned to ride out the impending consequence of lavish spending in these tight times. We have to be prudent in our spending.

If you have significant worries in providing for the holiday season, you are in order and it might be time that you instill some discipline in your spending so that you do not hurt yourself after the season is finished.

I have been reading recently so much material giving advice on how to enjoy spending the holidays rather than engage in a spending frenzy for the holidays. I will give you some of the tips I found interesting; I hope you do.

THE “To Dos”

1. Prepare a budget and set limits:
Write down all sure sources of income. Do not include any expected money that is not 100% certain. So you will have your salary, some savings you can comfortably withdraw from the bank, money from relatives abroad (only this time cater at 50%) and so on. Use you current house budget to guide you in the bit of extra spending; do up one if you never work from a budget.

Spend money on gifts and additional stuff after you have accounted for your monthly bills and basic necessities. You will need to set limits on how much you can afford for a gift and stick with it.

2. Make a list of who will get what and who will not get anything this year around
Only Santa gives gifts to the whole world and you are no Santa. So write a list of who you will be giving gifts to and what is the limit you can afford. It is not what you get someone for a gift which counts during this blessed season but more the thought of goodwill towards them.

Christmas cards are great for those who are not on your immediate family gift list. The internet is also something to be put to good use. Use the free cards and send bulk mails to friends on your contact list; let them know you care about them and wish them a season full of love and rich blessings.

3. Don’t look at the Joneses
Neighbours usually try to outdo each other at Christmas. Don’t get caught up in this useless endeavour this year; this is not a good time to be looking at your neighbour. If you have a little more to spend, do so by all means, but not as a matter of competition, and make sure that this is money left over from your holiday budget. Do not use more than you had initially budgeted for.

4. Shop around
Don’t buy from the first place you come across. Take your time and shop. Check shops and write down the prices, compare them and then buy. Remember, it’s all about getting the most out of your limited budget.

5. Make gifts
Make stuff if you are good with your hands and give as gifts. Personalized gifts are a good message to the receivers; I care so much about you that I have taken my time to make you this rather than buy you a gift.

6. Organize parties
Try as much as possible to enjoy the parties around. Free ones are the best, but you must be invited. Office parties are a hit, it’s the only time most workers get anything else from their employers. The ministry parties are great to attend, they’re fun and FREE. I hope that the government keeps many this year. Remember, though, it is the taxpayers’ money they are spending, so it is not really free, you are paying for it.

7. Finally
Remember that bit you took from your savings to add to your income? Well you will need to cut some unnecessary spending the following year to put back that amount in the bank.

CONCLUSION
My advice is that you do not be daunted by the problems of the world. This is especially a time of goodwill to all mankind; it’s a joyous season. Do enjoy the holidays without worrying about what you have spent. You had done your budget, set your limits and I am sure you will have as much a good time or even better.

HAPPY HOLIDAYS TO MY FELLOW GUYANESE – Merry Christmas!! Happy New Year!! Happy Eid ul Fitr!! Happy Honika!!! Happy Kwanza !!! Happy Chinese New Year!!! Until next time “Roop”.

Send comments to peter.ramsaroop@gmail.com or www.visionguyana.com

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