Five Holiday Spending Tips

23 Nov

Black Friday kicks off the holiday shopping season  – Five Holiday Spending Tips … and a gift to yourself

🎶 It’s the most wonderful time of the year.🎶 The holiday season seems to start earlier and earlier each year.  Just after Halloween the decorations and the merchandise come out in stores.  It all intensifies with the approach of Black Friday with 40% of Canadians reporting in 2018 that they planned to take advantage of deals on Black Friday.

What truly makes this season the most wonderful time of the year is not the gift-giving but the time spent with family and friends.  Retailers have lots of tricks up their sleeve to get you to part with your hard-earned money. 

Here are some holiday spending tips to arm yourself against their tactics.

  1. The holidays are really for children.  For adults, set a spending limit.  Make a list of the different family members, friends and co-workers you would like to give a gift to, spend an evening out with, or invite to a party, and set a spending limit for each of these.
  2. Use cash for these purchases, dinners out, and entertaining at home.  Cold hard cash makes it much more likely you will stick to the limits you planned.    Your brain reacts differently when you spend cash instead of using credit cards: it thinks twice before making the purchase.  Keeping these expenses off your credit card may also keep the cost down as you won’t pay interest on any unpaid balance in January or February.
  3. Avoid shopping for yourself while making the holiday purchases.  You are out in the malls and can easily see a few items you would like.  Resist the urge to pick them up; remember that they are likely to be on sale after December 25 if you still want them.
  4. Big gifts are not necessarily better than small, thoughtful gifts.   Take the time to think of something really meaningful for a loved one and it will surely be most appreciated.
  5. Talk with family and friends about your approach to gift-giving. Many Canadians find it stressful to balance the joys of the holidays with the expenses. If none of us talk about it, we may feel obliged to do the same thing year after year with less joy than before.  55% of Canadians report planning to spend less in 2019 than 2018. 

And finally – when your financial advisor goes over your spending and debts at the same time that he or she reviews your investments and insurance, what conclusions do you reach? Do you have a written cash flow plan that ensures you are on track to retire debt-free? Are you becoming more financially literate with each appointment?

If your current Advisor doesn’t provide this type of review, you might want to consider shopping for a new one.  Contact me today at 905-707-5220 for 25% OFF your customized Cash Flow Plan with my Black Friday Special Offer! It will be a great gift to yourself to start off 2020.

New year, new you, new plan!