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Under normal circumstances, the holidays can be a stressful time since there is often an expectation to create a picture-perfect Christmas filled with lavish gifts, food, travel and happy family celebrations all of which requires money.

But the extraordinary circumstances of the second Covid-19 Christmas have added financial strain to people worldwide.

The pandemic turned the world upside down — sending people into isolation, forcing businesses to close, leading to job loss and pay cuts and drastically changing the way we celebrate the holidays.

“It’s still not Christmas as usual for me. I had hopes that Christmas 2021 would be better than 2020, and started to build a sense of relief.

Well, here we are and we only recently learned of yet another potentially more dangerous omicron variant,” says Gracie Joan a business woman in Nairobi.

She shares how low sales, high cost of living and harsh economic times has conspired to deny her a holiday in Watamu.

“I’m a single mother and I had promised my eight-year-old daughter that I would fly her for a holiday at Watamu.

But checking my financial situation, I don’t think this will be possible. I will look for a cheaper destination, even if it means spending a day out of Nairobi,” she says.

Gracie is not the only one who intends to cut cost this Christmas. But Joan Kimathi, a financial advisor, says the festive season is not so much about minimising spending, but spending within your limits.

This means you shouldn’t spend more than you have. So, if for instance your usual monthly expenditure is about Sh10,000 to 15,000 maintain that. 

Money problems

“You need to remember your December salary (which ordinarily is paid early) should last until the end of January, which in most cases is a tough one, right?” she poses. 

So much of the festive season is money-orientated, and many get the impression that you have to go ‘all out’ to make Christmas a memorable one.

“Financial stress can take a toll on someone’s physical and mental well-being, and can lead to serious conditions such as sleep loss, anxiety, depression, trouble eating, headaches and high blood pressure among others,” she shares.

It isn’t just the individual who can be affected by financial stress. Kimathi shares how financial stress can also lead to arguments in families and relationship breakdowns.

It can cause a hostile environment on Christmas Day and cause someone to withdraw from their loved ones.

Worrying about money can prevent someone from being excited about Christmas as they are unable to afford their ‘perfect Christmas’.

Equally, it can spoil the day itself that may extend to New Year as one frets over debt and what sacrifices he or she will have to make for spending more than usual.

To spend your Christmas in sanity, take care of core expenses such as food, rent, school fees and insurance before holiday spending. 

This usually saves your bank account the Njaanuary stress. With the current economic hardship, Kimathi says seeking more cost-efficient ways to celebrate the holidays such as indoor plans with friends can be a cheaper option than outdoor plans.

Saying  ‘no’ and other tips

“It’s okay to say no to plans that are beyond your budget, don’t be afraid to say that you can’t afford to participate in an activity.

Through this, you don’t need to overspend in order to meet expectations of people around you,” says Kimathi. 

Avoiding luxury and taking advantage of offers that benefit you, Kimathi says, saves you from digging deeper in your pockets.  

Another important thing to do is to plan early for holiday spending— Kimathi suggests you can either consider saving up throughout the year for a Christmas holiday or making prior payments of holiday destinations that you look forward to visiting. 

“You need to remember it’s about spending within your usual limits. It’s a balance between restraining yourself and having a good time during the jolliest time of year,” she says. 

Also, determine whether to keep or discard family traditions. “Continuing family traditions links us to the past, particularly the carefree days of our childhood when Santa Claus was real and Christmas Day was the most exciting day of the year.

Most families have holiday traditions, some simple and others quite elaborate.

Whatever your family practices during the season, if what was done in the past doesn’t work today, stop or change the practice.

Just because something is traditional is no reason to keep doing it,” she says.

She adds, “Now that you are fully committed to a festive season that won’t leave you broke, staying on track is important.

It’s easier to stick to your budget when you are easily able to see how and where you are spending your hard-earned cash.

Start a spreadsheet, and make sure you add all your expenses and purchases to it, every day.”