Between glamorous parties, lavish gifts and tryptophan filled turkey, Christmas is a season of overindulgence in every respect. While spending time with loved ones is definitely something to look forward to, the often accompanying debt load can be well managed with some foresight.
According to the Chartered Professional Accountants of Canada, 37% of Canadians polled planned to spend more than $800 on holiday gifts in 2016. 39% of respondents agreed that they saved throughout the year for the holiday season spending, yet a whopping 59% of respondents agree that they worry about money. While there appears to be some disconnect, I’d like to share a few helpful tips to curb Christmas spending so you are moving forward towards your financial goals when we hit the New Year.
The first thing you can do is set a budget. The word budget is often associated with limitations and restrictions but it should be considered a guideline. Almost like a roadmap for spending. You can set yourself a comfortable budget before the Christmas season starts, giving some thought to all of the holiday related expenses such as gifts, travel, food, decorations, etc.
The second strategy would be very Santa-esque in that you should make a list (of necessary expenditures, not of people who are naughty and nice!). Check it twice. A list coupled with a budget will be beneficial in determining how much money will be allocated to each item.
The third strategy would be to track spending. Have you ever gone on a diet and counted calories, then stopped eating for the day as you reached a certain number (based on that comment you’d think I’ve done this). It’s the same idea. Track your spending, and when you get close to your budgeted amount on a particular item, it’s time to head to the register to avoid going overboard.
Keeping these tips in mind can help you avoid post-Christmas financial stress. Going into January, it’s easy to focus on financial goals when there are no consumer debts to be paid. I usually say “to a good financial future” but today, dear reader, I say have a safe and happy holiday season!
Bharathi Sandhu works with Raymond James Ltd. The views of the author do not necessarily reflect those of Raymond James Ltd. Information is from sources believed reliable but cannot be guaranteed. This is provided for information only. We recommend that clients seek independent advice from a professional advisor on tax-related matters. Securities offered through Raymond James Ltd., member of the Canadian Investor Protection Fund. Insurance services offered through Raymond James Financial Planning Ltd., not a member of the Canadian Investor Protection Fund
