Welcome to the holidays, which can be the most expensive time of the year! From thoughtful gifts for grandchildren, to gifts that say, “I love you” to a significant other, the holiday season can certainly be a financial trap. So while I typically focus these blog articles on higher level planning and investment related topics, today I want to share something much more fundamental, like how to keep our spending in order, even if spending is done in the name of giving gifts.
By considering these tips, perhaps your January bank statement or credit card bill won’t make your eyes pop!
Make a list and stick to it. Check it twice. We always suggest making a plan and prioritizing what’s most important. Those who make a plan, write it down and review it frequently are much more likely to stick to it. So know whom you’re buying for, set a dollar amount that works for you and review, review, review.
“Deals” are sometimes meant to deceive you. Studies show that the “best deals” are not always given at the beginning of the season like Black Friday and Cyber Monday ads pitch. So be patient with your spending. Do some preparation by reviewing catalogs or store websites. Compare prices over time to ensure your purchases are meaningful and fairly priced.
Pay cash. Withdrawal the budget balance and when you run out of cash you are done spending. Paying cash forces us to consider each purchase carefully and will force you to follow a list.
Consider shopping online. Retail stores are great at display placement and pitching deals for items that probably aren’t on your list. We have all bought something we didn’t really need because the price just looked so irresistible! I bet this urge is amplified during holiday shopping. So consider removing yourself from the rush of traffic, the long check out lines and the other shoppers. Sit behind your desk with a warm cup of hot chocolate and take your time.
It’s a wonderful time of the year to think about the loved ones in our lives with gifts. Santa has limits though and so should you. So make a list. If you’re not much of a planner or list maker, consider giving us a call. We are here to help align your personal values, vision and wealth and we’re pretty good at making lists. We’ll even help you check it twice. Happy Holidays!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Article Tracking # 1-562083