Year end financial tips during this holiday season
Year end has quickly caught up with us all. With the holiday season in the midst of all our daily activities, we get caught up in the cycle of spend, spend, spend. We buy gifts, plan vacations, purchase enormous amounts of food and spirits, as our way of creating a season of tidings and great joy! After all the dust has settled, and we make our way back to the everyday hustle and bustle of life, it is then we take notice of all the resources we used to make such a joyous occasion happen. There are ways to still enjoy ourselves while keeping a close watch on how much money we spend. Planning ahead for major events always puts us in a better situation than if we haven’t planned at all. Take note of what your financial limitations are and put yourself on a budget. Giving yourself these parameters to operate within will guide you through this period of spontaneity, when you feel like having just a little bit more won’t hurt. And remember, tax season is right around the corner. This is not the time or place to have the attitude that your refund will cover all your holiday expenditures. That’s like robbing Peter to pay Paul. Your tax profile should be well organized so that you can have the best tax filing experience ever. Below are some suggestions to help keep you on track.
1. Set up a holiday budget for gifts, parties, vacations, etc. Be sure to add a cushion of maybe 5-10% extra to allow for surprises (ex: I forget to get cousin Susie a gift)
2. DON’T USE CREDIT CARDS. It makes no sense to create more debt during this period. It’s very easy to go overboard with your spending. I personally am a big proponent of using my debit card from my checking account. This way I can’t spend more than I actually have. If you use credit cards, be prepared to pay them off immediately in January.
3. Find unique ways to give gifts, such as hand crafts, baking a favorite dish, or even performing an act of kindness.
4. Keep a receipt for all purchases during this period. During the holidays many events occur, such as parties, galas, and fund raisers, that are actually tax deductible events. You will need this information come tax time.
5. REMEMBER: the holidays are a time for sharing and enjoying the company of family friends. Reach out to someone who you haven’t heard from in awhile and let them know you care. It’s not always about the “things we get”, but more so about the “things we give”, such as Love.
Have a joyous and safe holiday, and remember spend wisely!
Jacqueline Ford
Financial Strategist
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