By Christopher Cervantes, RFP
The Halloween costumes and decorations are now safely kept at the stock room and Christmas decors are in full gear. As we enter the month of December, we may already be starting to feel the pain of Christmas spending. For some, no amount of 13th-month pay or year-end bonus will be enough to buy all the items being displayed in the mall. Calendars are almost full of events with friends and extended family members. Overindulging comes every Christmas. However, substantial food and drinks are often matched with overspending, making the first part of every year as damage repair months for our budgets we wasted for the last couple of months.
If you are like the many who are thinking of ways to deal wisely with money every spending season, here are some of the things you may employ to finally amend the culture that no longer adds value to your life. Don’t worry, we don’t need to eliminate our philosophical view of the season, but we can be wiser this time.
Before December, there are things you can do to prepare intelligently for the holidays. You might not even want to think about it yet, but a little bit of advance planning will save you lots of money by the time holidays pass.
Download a note app on your mobile phone. Personally, I like to use Evernote. If you are used to OneNote, that would be fine. List down all the people you really want to give or send a gift on your note app. Then on that list, show how much budget you are willing to allocate to each person. Then, instead of window shopping, shop online for the items matching your gift ideas, then compare the price from different suppliers. This will save you money and precious time. It is also a good idea to spend your November 30 holiday at home and prepare homemade gifts. Each year, we try to make some homemade gifts, particularly for the people on the list who will appreciate themt. Instead of buying grocery packs, you can buy individual items in your grocery list and pack your gifts on a personalized manner. Remember, personalized gifts are cheaper and more appreciated but they require lead time.
In December, you can still save money if you will do important preparation in the weeks leading up to Christmas. Make your own Christmas decorations by involving your kids. You can spend one weekend for this activity. This will not only patch a hole in your pocket but develop the creativity of your children as well. Making it part of your culture will surely make your holidays something to look forward to and an unforgettable family event. Just look around your house and for sure there are many items you are thinking of throwing away already but can still be used as raw materials for your Christmas decor. You can use an old cloth, cardboard, boxes, jars, etc.
Using your note app, keep a running total. Keep a close check on your spending. It will be so easy to go beyond your budget using your credit or debit cards. So use cash instead when buying something. Data revealed only 57 percent of people who set a Christmas budget stick to it. Paying in cash will relieve you of after-Christmas pain. The painful reality is 80 percent of people have not cleared their holidays debts by April the following year.
You may also want to contact a Registered Financial Planner who can assist you in organizing your finances. This will help you be more realistic on your ideal way of celebrating the season.
We all know that it is hard to escape the fact that Christmas is expensive and it always seem to come around very quickly. We are all dreaming of financial independence and doing everything to save and invest throughout the year, then suddenly it’s December and we all lose our money sense. Yes, this season can be overwhelming, but if you do the right plan and start it early and execute carefully, you can cut out a lot of spending without taking even one happiness away from your holiday celebrations.
