Last update: 07.12.2018 15:34
December is full of parties, celebrations, presents… and spending!
The financial consequences are often felt in January.
We talk to Daniel Christen from Systemcredit about the January slump.
He is familiar with the liquidity bottlenecks experienced by SMEs at the start of the year and believes that private individuals and families should also plan their finances like a small company.
We see the January slump coming every year, why do you think we don’t prepare enough?
Daniel: Do we really see it coming?
I think we’re more likely to be caught in the same pattern.
The last quarter of the year is exhausting and then we retreat from our summery outdoor tendencies into the cozy, warm interior.
We make ourselves comfortable there and let the January slump catch us out again and again.
It’s actually like when we change our health insurance, which we regularly miss out on out of convenience – and against our better judgment.
| Dr. Daniel Christen is CEO of Systemcredit and a credit expert
Systemcredit shows SMEs simple ways to find suitable loans with fair conditions. |
 |
So we would actually know better.
Do you see similar patterns in companies?
Daniel: Small, agile companies in particular are usually manageable and could actually prepare themselves well.
But they have little room for maneuver and everything is up to the boss.
Medium-sized companies with between 50 and 250 employees usually have a higher degree of organization, especially a salaried CFO, and they have it under control.
After all, the CFO is also paid to increase the company’s profitability.
These companies also have negotiating power, unlike small companies or us private individuals.
What distinguishes us private individuals or a family from a company when it comes to budget planning?
Daniel: I strongly advocate understanding family finances like a small company.
Companies are also productive social systems and are made up of people.
The big difference is that the life cycle of us humans is different to that of companies and we have to align our budget planning accordingly.
So, what can we do within our family and our maneuvering space to prepare for the January slump?
- Questioning the consumer frenzy: Of course we should make ourselves comfortable in the warmth and enjoy Christmas.
At the same time, we can become aware of the consumer frenzy instead of automatically joining in.
Who do I really want to meet up with for a mulled wine aperitif or Christmas dinner this year?
Do I really have to give everyone a present?
Perhaps one or two expensive things can be canceled or replaced by an activity in January. - Plan your spending: not just for December, but more importantly for January too.
If I know what’s coming up in January, I can weigh up my spending much better in December.
I’m also less tempted to spend all my money this year as if there’s no next year.
After all, I’ve made myself aware that there’s still a lot to experience in January.
I can also juggle and plan less spending in January now.
Maybe I won’t go skiing again until February.
After all, we all want to have a relaxed Christmas season – and a relaxed start to the year without a January slump!
