I don’t know about you, but I feel like the holiday season resembles a frantic sleigh ride. It’s filled with fun festivities and merry gatherings but it’s also blooming exhausting. Honestly, as much as I love Christmas and all the sparkly lights, it’s just another pile of tasks that have to be done…and money that has to be spent. And that makes me antsy. It’s all too easy to lose sight of financial prudence, oh I just need to get this and this so that the meal is perfect. And why do we need so much stuff? I’m learning, in my 5th decade, that less truly is more. Excessive spending always leads to a daunting January hangover of depleted bank accounts and sometimes mounting debt. For so many years I did this and was always sad that I got caught up in it.
Blue Monday is the third Monday in January and is the most depressing day of the year. The term was coined in 2005 because that was the day the December credit card bill was due for payment. Depressing indeed when you don’t have enough funds in your account to pay the bill and so you’re now accruing interest for a few months while you pay it down. Ugh.
According to research conducted by the Chartered Professional Accountants of Canada (CPA Canada), the average Canadian is projected to splurge approximately $595 on holiday gifts this year, down by about 8% from last year. The national average for total holiday spending is $2,825, including gifts, travel and entertainment. That is scary. I mean, you can get a root canal for that! Ha okay, you’re right, not as much fun. Alarmingly though, 59% of respondents of the CPA research aged 18-34 will be relying on their credit cards to finance the holidays. Egad.
Let’s say we commit to cutting down on the crap under the tree this year. We both know that beyond the anticipated costs of gifts is still a plethora of concealed expenses that can significantly inflate our holiday budgets (if we have a budget!). From festive attire (we all love a bit of sparkle) to host gifts, charitable donations, and increased dining out, the cumulative financial strain can quickly escalate, especially with the added expenses if you’re actually hosting the gatherings and Uber’s to attend numerous social events. Good grief, I’m exhausted thinking about it all and it’s only 8th December.
So, as the holiday season looms on the horizon, I’ve put together a bunch of actionable strategies to help you navigate the festivities with fiscal prudence, you’re welcome:
1. Embrace Gratitude Wholeheartedly
Remember to take a minute and be thankful for what we have. Amidst the hustle and bustle of holiday preparations, cultivating a spirit of genuine gratitude can serve as a powerful antidote to the pervasive stress and financial strain. I don’t always do it consistently, but for the last couple of weeks, I’ve been writing in my journal what I’m grateful for, every day. Research consistently underscores the transformative impact of gratitude on overall well-being, fostering a heightened sense of contentment and resilience. By integrating daily gratitude practices into your routine, such as reflecting on small blessings or expressing appreciation to loved ones, you can cultivate a mindset of abundance and fulfilment. Let’s be done with the materialistic trappings of the season.
2. Formulate a Comprehensive Plan and Nurture Your Creativity
Establishing a clear budgetary framework is essential for curbing impulsive spending and ensuring financial alignment with your priorities – if you tell me you don’t have any financial goals yet, I’ll have to stick my fingers in my ears and run off into the forest. Begin by delineating your total expenditure limit, then apportioning funds across distinct categories such as gifts, groceries, and entertainment. Vigilant tracking of daily expenses empowers you to course-correct in real-time, mitigating the risk of budgetary overreach. Also, leverage creative alternatives such as utilizing accumulated rewards points, crafting personalized gifts, or hosting potluck gatherings to infuse the holiday season with heartfelt sentiment sans exorbitant costs. Yesterday, I spent a couple hours making some DIY gifts that I can’t write about here or my friends will know what they’re getting for Christmas, other than my company. They’re so lucky!
3. Seek Support and Delegate Responsibilities
Embrace the spirit of communal camaraderie by enlisting the assistance of friends and family in alleviating the logistical and financial burdens associated with holiday hosting. Openly communicate your preferences to house guests, suggesting contributions to shared meals or collaborative gift-giving initiatives. Additionally, don’t hesitate to delegate responsibilities and share the workload, whether it entails preparing the main feast or organizing celebratory gatherings. Instead of doing all the work this year and being given a bottle of wine in return, I’m going to be asking for someone to bring dessert, and another to bring veggies. By fostering a collective ethos of shared responsibility, you can foster a more equitable and enjoyable holiday experience for all involved. Especially you.
4. Prioritize Meaningful Experiences Over Excessive Activities
Amidst the inundation of Taylor Swift concerts, holiday engagements and social obligations, it’s super important to prioritize quality over quantity when selecting seasonal activities. Rather than succumbing to the pressure of attending every event on the calendar, identify meaningful traditions and experiences that resonate with your values and foster genuine connections. Whether it’s crafting handmade decorations with loved ones or relishing quiet moments by the fireside, embracing simplicity can fill your holiday season with a profound sense of authenticity and fulfilment.
So, there we have it, that’s my 4-tip low down on navigating the holiday season with financial smarts by using a mindful blend of gratitude, resourcefulness, and intentional living. By embracing these strategies, we can embark on a journey towards a debt-free January, savouring the true essence of the season while safeguarding our financial well-being for the year ahead. And what’s to say you don’t go forth into 2025 with the same mindset?
Good luck and seasons blessings to you and yours!
CPA Research Information: https://www.cpacanada.ca/news/features/bdo-holiday
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