FLASHBACK: Desist from 'borrowing-to-spend' tactic during Christmas – Finance expert

A financial consultant, Charles Mensah, advised people to desist from borrowing for Christmas expenditures.

“I want you to adopt something called BSI. When you receive your bonus, the B stands for pay down your debt, your own personal debt people that you owe, and the S stands for savings. When you pay down your debt then you can save before you probably do the Investment.

“For any company that borrows to pay bonuses, you are not ready… you are just acting because it's like borrowing to get married. You are just not ready for such a move. Because payment of borrowed funds starts in January where is the profit and where is the money going to come from to settle the debts?” he added.

Read the full story originally published on December 17, 2021, by GhanaWeb

Christmas festivities result in high spending

Finance experts calls for prudent planning in spending

Desist from borrowing to spend, Expert advises

Business owners and the general public have been advised not to apply a ‘borrow-to-spend’ tactic during the festive season of Christmas.

According to financial consultant, Charles Mensah, it is more prudent to consider financial planning towards the coming year.

Speaking on the Business edition of JoyNews’ PM Express, the finance expert highlighted on how employees can make good use of their received bonus from their employers.

“I want you to adopt something called BSI. When you receive your bonus, the B stands for pay down your debt, your own personal debt people that you owe, the S stands for savings. When you pay down your debt then you can save before you probably do the Investment,” Mensah explained.

He further charged employers to desist from borrowing to pay employees bonuses.

“For any company that borrows to pay bonuses, you are not ready… you are just acting because its like borrowing to get married. You are just not ready for such a move. Because payment of borrowed for funds starts in January where is the profit and where is the money going to come from to settle the debts?”

The Finance expert also tasked employers to introduce insurance policy schemes for their employees as he believes will be more beneficial to them.

“Introduce them [employees] certain insurance scheme like savings and loans or something that they can cash out by November, December because once you start January, there would be December.

“So, December shouldn’t be a surprise that you are now looking, scratching here and there selling assets of the company or doing this just to please them. Only to Ghana Revenue Authority knock on your door in the morning of January and then you cannot even pay,” Charles Mensah stated.

Meanwhile, holiday lovers are expected to spend more during the festive season as a result of high demand for goods and services.