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As the end of 2024 approaches, it is easy to overspend and lose track of your finances. However, adopting a few smart financial habits can help you finish the last quarter strong and avoid starting the new year in debt, JOSEPHINE OGUNDEJI writes
As each year drew close, a travel consultant, Funto Adesanya, always fell into the same familiar trap: spending injudiciously during festive seasons.
Speaking to our correspondent, Adesanya lamented that every December, it was the same story of holiday sales, festive gatherings, and end-of-year vacations that seemed to demand a never-ending flow of cash.
She said, “I told myself it was justifiable after all, it is the season of giving, right? But by January, I’d always find myself financially exhausted, wondering how I had managed to squander so much in such a short time. Last year was my breaking point. I had maxed out my debit card and dipped into my savings just to keep up with the holiday frenzy.
“When the dust settled and the new year arrived, I was left with the sobering reality of bills I couldn’t pay and a deep sense of regret. I knew something had to change.
“That’s when I decided to break the cycle. I began preparing early, setting up a budget for the holiday season, and focusing on spending within my means. I also started prioritising experiences over material things, which helped reduce the financial pressure.”
As the year winds down and the holiday season approaches, it’s easy to get caught up in the whirlwind of shopping, festivities, and last-minute splurges. For many, the final quarter can be a financial minefield, leading to overspending and regret as the new year begins. However, by adopting a few mindful financial habits, you can successfully navigate this season without draining your savings or racking up debt. In this article, we’ll explore key habits that will help you close out the year on solid financial footing, setting you up for a prosperous start to the next.
In a newsletter sent via mail, MoneyAfrica gave 5 tips, listed below, on maximising financial habits to end quarter 4 of the year successfully. They are:
Cultivate the habit of budgeting
I understand that you’ve probably heard this piece of advice countless times, but it remains a crucial step on your path to financial freedom. Budgeting provides a clear picture of where your money is going, helping you identify areas where you can cut back or save more. Consider obtaining your monthly bank statement and categorising your spending into different buckets to get a grasp of your monthly spending.
Alternatively, you can simplify this process by using apps that automatically track your expenditures whenever you make transfers from your bank accounts. This simple practice can be a game-changer on your journey to financial stability.
Have an emergency fund
While it’s tempting to boast about owning shares in prominent companies, it is essential to prioritise building an emergency fund in your financial journey. Life is unpredictable, and unexpected situations could arise, often beyond our control or with the help of friends and family. That’s why it’s wise to allocate a portion of your income each month to an emergency fund and refrain from using it unless a genuine crisis occurs. This simple practice can save you from financial stress or the need to rely on loan apps.
Stop making poor spending decisions
Stop impulsive purchases. We often splurge on unnecessary purchases, whether it’s the latest trendy fashion piece or the newest gadget, sometimes using shopping as a way to seek validation. It is crucial to remind ourselves that the most remarkable aspects of our identity aren’t tied to material possessions.
Avoid irresponsible borrowing
While debt is sometimes necessary, such as for education, business expansion, or mortgage, it is essential to differentiate between reasonable and unnecessary borrowing. Utilising loans from financial institutions for significant investments like the ones mentioned above could be worth the while, but relying on friends and family to fund non-essential expenses like ceremonial clothing for funerals, birthdays weddings and others can harm your financial stability.
Taking on debt for items beyond your current financial means can lead to a cycle of indebtedness, making it challenging to cover essential expenses. It’s advisable to steer clear of such unnecessary expenditures to maintain a healthy financial outlook.
Stop trying to use money to solve deeper problems
Avoid using money as a solution for more profound issues. Money can’t always fix the underlying challenges we face in life. Instead of relying solely on money to address these issues, we should often look within ourselves and explore alternative means to confront and resolve our deeper problems. While money can alleviate some concerns, true contentment and fulfilment usually come from addressing the root causes of our troubles rather than merely applying financial remedies.
The newsletter added, “In conclusion, adopting these five financial habits can significantly impact your financial well-being and set you on a path to end the year successfully. By managing debt wisely, curbing impulse spending, prioritising an emergency fund, and avoiding using money to solve deeper issues, you’ll be better equipped to navigate your financial journey.“
A finance analyst, Stanley Onuorah, in an Instagram post advised that towards the festive season people should begin to buy in bulk, as costs double in price ahead of the festive season.
He said, “In the December period, things are double their usual prices, and with inflation really high, the best thing you can do is to buy the things you can use later now because you do not know what the price would be tomorrow.
“Also, if you want to make quick money, this is the time to buy in bulk and stock for resale. My brothers and sisters in diaspora that would send money back home, please send the money now so that they can buy those things ahead of time, buying more and saving more later.”
A chartered Accountant, Sola Adesakin, said as the final quarter of the year was approaching, it was time to take a deep breath and prepare to finish strong.
She said, “The last quarter which I like to call the power quarter is where fresh ideas, renewed motivation, and new opportunities often surface. It’s the perfect time to realign your goals, connect with the right people, and secure the resources you need to achieve your financial aspirations. But before diving into Q4, let’s reflect on how things have gone so far and gear up for the final stretch.
“Think back to the start of the year. Did you set financial goals? If so, have you met them? It’s important to measure your progress against your original plan. If you didn’t meet your goals, don’t beat yourself up this is your opportunity to refocus and make the final quarter count, and if you didn’t set any goals, now’s the time to start. Setting even small, specific goals for the next three months can make a significant difference.”
Adesakin asserted that taking an honest look at how your finances have been managed over the past months.
“Have you been able to save, invest, or grow your income? Did you make smart spending choices, or have there been financial leaks that need plugging? Assessing your financial habits is the first step toward improving them. If there were setbacks, use them as learning experiences and adjust your plan for Q4.
“The make-manage-multiply strategy is a straightforward framework for financial success. Ask yourself: Have I found ways to increase my income? Have I managed my expenses and stayed within my budget? Have I invested or found ways to grow my wealth?
“If you haven’t focused on all three areas, now is the time to identify which one needs the most attention,“ Adesakin mentioned.
The finance expert noted that financial success was a continuous journey, not a destination.
She stressed. “Even if you’ve done well so far this year, there’s always room for improvement. Could you do better with saving, investing, or reducing debt? What steps can you take in Q4 to get closer to your long-term goals? Write them down and set actionable plans to improve those areas.
“The final quarter is often a time when unexpected opportunities arise—new projects, promotions, partnerships, or investments. Stay open to these possibilities and prepare yourself mentally to embrace fresh ideas, new connections, and the energy to execute. Q4 can be the game-changer you’ve been waiting for.
“With renewed hope, strategic focus, and intentionality, your results in the coming months can far exceed your expectations. So, whether you’ve hit your targets or are feeling behind, use this moment to reset, refocus, and reignite your financial goals.”
To successfully end the last quarter of the year on a strong financial footing, prioritise budgeting and tracking expenses. A well-structured budget provides clarity on income, expenses, and savings targets, ensuring that every dollar has a purpose. Regularly tracking your spending helps you identify areas where you might be overspending and enables you to make real-time adjustments. This discipline can lead to better cash flow management and ensure that you meet or exceed your financial goals by year-end.
Another critical habit is debt management. With the year drawing to a close, it’s vital to review outstanding debts and focus on reducing or paying them off where possible. High-interest debts, in particular, should be prioritised to minimise long-term costs. By making additional payments or restructuring loans, you can ease financial burdens and start the new year in a healthier financial position. If you’re in a comfortable position with low debt, consider increasing your savings or investment contributions.
Lastly, plan for the future by taking stock of upcoming financial commitments and setting realistic goals for the next year.
Whether it’s retirement savings, emergency funds, or upcoming large purchases, now is the time to align your financial plans with your long-term objectives. By reviewing your current investments, adjusting your portfolio if necessary, and maximising year-end tax benefits, you position yourself for continued financial success while ending the quarter strong.
