Christmas Holiday Spending Season is fast approaching!!

 
This annual holiday season usually comes with high expectations - a time of festive gatherings and gift giving. This can mean it's an expensive, financially stressful time. Often a financial hangover in January is the outcome

So how does your spending plan look? It will involve looking at your finances and determine how much you can afford to spend and then allocate the spending among your priorities. This is the reverse of what often happens - typically we spend and then see what the effect is on the finances!!

In a perfect world of personal finances, the spending plan would already be in place. If it is not, we recommend that you set up a monthly budget including all your monthly income and list out all your typical monthly expenses. Subtract the expenses from the income and the residual amount is the unallocated spending for your plan. Consider whether you have any large costs which you need to save for (car repairs, paying down debt, holidays, health costs, clothing etc). An amount should be set aside for these expenses. The remaining funds can be considered for your holiday spending plan. This amount may not be very large and you need to seriously consider whether your proposed spending will exceed the available amount.

If you have trouble with conventional budgeting you may want to consider the "envelope system" to control your spending. Simply put the spending cash into envelopes marked for the specific purpose - gift buying, special outings, extra entertaining at home etc. Then as you go through the holiday season, use the cash from the envelopes. When the cash is spent, you know you have exhausted your budgeted amounts and activities are to be curtailed. Setting up the spending plan early and discussing it with those in your family is worthwhile so that expectations are realistic and expenditures are at an affordable level.

Spending less during this time of year does not make you a Scrooge. You and your family can spend more quality time together, be more creative in gift giving at an affordable level without any negative aftermath. In this way, it will be your best holiday season in years!

For further information or to get assistance contact us by phone at 403 266-6665, email or come in for a free consultation.