By Christopher Cervantes, RFP

LAST Christmas of 2020, everybody was excited for 2021 and expected that this was the year of the recovery period until Delta variant pop-up sometime in May and had spread to over 179 countries by November. With the continuous vaccination program, Covid cases in our country are constantly declining, making everyone excited that 2022 is the year of full recovery until the Omicron variant shocks the market again.

With the government’s experience in handling the pandemic, we are better positioned not to be so afraid of this new development. We are still hopeful that the light we are seeing is truly the end of the tunnel. Still, it’s wise to consider that we are not yet out of the woods.

With the holiday season fast approaching, many people start to question how to spend their time and money, knowing that many companies might not still give bonuses this year. Under typical situations, the holidays are the most stressful time next to enrollment season. But the unprecedented time due to pandemics has added financial strain to almost all of us. So, while we are finally trying to find ways to get out of this crisis, it is wise to think about how we can afford this holiday season without totally draining our finances.

With or without a pandemic, coming up with a holiday spending plan is the best strategy to protect your finances. The best lesson that most people learn from this crisis is that the need to look good is the root of all the problems, both financially and emotionally.

First, prioritize your obligations, then figure out how much you can afford to allocate for the holidays. Next, prioritize your children and parents in planning your gift list, followed by essential people if you can still add them up to your budget. Then after that, think twice if you need to add more to that list.

Many people are worried about going into debt every Christmas season. If you struggle to spend for the holidays, don’t use debt to tide you over. You might enjoy the Season for a month, but paying back the debt could be expensive. Looking after your finances is not just about taking care of your financial well-being but also your mental wellness.

Before paying for your planned travel, check how many points you already have on your credit card and consider redeeming those points. With the latest development of new variants, it is also a good idea to rethink your plan of exposing yourself and your family. Instead of facing the fear of the unknown, why not celebrate the season at the comfort of your home. If you plan to invite guests, make sure that they understand and agree to your house rules beforehand, especially if you have a senior or family member with comorbidity.

While it is tempting to start spending our Christmas bonus on a new gadget or online sale, consider allocating it to protect your finances in the future. You may opt to pay your debts or fully fund your emergency savings. If you are a breadwinner, the best way to spend your Christmas bonus is to invest in health insurance for yourself or your loved ones.

If you are unhappy with the amount of bonus you receive compared with the previous years, the best way to grow is to invest part of it. You may sign up for a mutual fund or UITF with that even if you have little knowledge in investing, and you will be able to access the expertise of their fund managers. Now that the market is correcting due to the recent Covid situation, I advise against selling your investments right now. Instead, consider contributing more to your retirement investment account. If you think that we are on our way to recovery, this is not yet the best time to sell but to accumulate.

Expect that this pandemic is likely going to continue affecting your personal finance. But, regardless of how bad it has involved you already, you can take steps to improve your financial position. This crisis has genuinely changed the way we think about money.

It is important to note that this is not yet your usual Christmas. However, you and your family choose to celebrate, and I hope your Christmas season will be happy and safe.