- November 29, 2021
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It’s beginning to look a lot like Christmas.
The holidays are upon us, and, while they were never meant to be marked by stress and anxiety, all too often, the most wonderful time of the year becomes less about spending time with loved ones and more about overscheduling and overspending.
As many persons are still recovering from the financial challenges of Covid-19, it is very important this Christmas to be fiscally responsible. The following holiday shopping and spending tips can help keep your holidays merry and your finances bright as you celebrate the reason for this magical season.
- Set a realistic holiday budget. Figure out exactly how much money you have to spend. Once the green is gone, you’re done. And don’t forget to factor in wrapping paper and holiday cards. The little extras that are often forgotten are just the things that can throw your entire budget off track if you’re not careful.
- Make your holiday shopping list. After you set a budget, make a gift list and check it twice. List all family members, friends, and co-workers for whom you plan to make purchases. Be flexible in cutting the list to accommodate your budget if needed.
- Do your homework. There’s nothing worse than buying a gift at full price only to see that another retailer is selling it cheaper. So, before you hit the stores, do your homework and compare prices for the gifts you know you want to buy. From newspaper ads to online shopping that offers free shipping and other holiday deals, do your research and create a ‘plan of attack’ to help your money work harder for you.
- Get a head start. It’s much easier to make smart choices with your money when you’re not waiting until the last minute to shop. Procrastinating only promotes rushed shopping, overspending, and buyer’s remorse as the guilt of going over budget sets in. Get a head start and begin your holiday shopping early enough to take your time and make smart choices.
- Beware of buying everything on credit. Avoid buying too many gifts using your credit card. Instead, save bit by bit throughout the year, possibly using a Christmas Club account, so you can splurge your savings on gifts for the whole family or travel home for the holidays. By spending money that you actually have, you avoid all the stress that comes with pesky holiday bills stacked with interest, and you won’t be paying off a $100 gift 10 years from now.
- Give the gift that keeps on giving. This season, why not consider opening an RF Personal Pension Plan (RFPPP) account for yourself or a loved one? An RFPPP is a great investment that will provide peace of mind and financial security well into the future.
The Bottom Line
Don't let your debt become the Scrooge that steals the fun out of your holiday season. Spend time with your friends and family, base your gift buying on sentiment rather than dollar value and avoid giving yourself a year-round debt headache. If you can follow these tips, when your holiday bank statements arrive in the New Year, you'll find yourself singing "Joy to the World" all over again!
Happy Holidays!