(Putting a temporary hold on mortgage-related blog posts to help you get ready for Christmas and the holiday season.)
This year, people of all generations are looking for ways to embrace a more economical way of living. Many are struggling with substantial debt caused by circumstances beyond their control. Let's stay committed to finding joy in life with little tweaks to our holiday traditions.
Last year, while I decorated my tree, I watched my husband fixing our lawn deer decorations. We chose to be resourceful by fixing what we already owned. We knew a simple Google search could provide instructions on rewiring it. I used to feel ashamed when my husband repeatedly rewired my reading lamp, fearing it would reflect poorly on our financial management. Now I realize it's about being wise. We value wisdom and peace from being on the same page.
Money Tip:
Begin by identifying your values with an online Value Assessment like the one provided by Tier Maker here. This will help you highlight what matters most and align your financial decisions. You can explore further your values and establish a significant direction for the future, remaining loyal to what truly matters to you.
Holiday Money Tip:
The holiday season is a time of joy and togetherness, but it can also bring extra expenses such as gifts, dining out, cards, flowers, shipping, tickets, and stress.
Here are some helpful suggestions to manage these costs effectively:
Make a detailed list of gifts, including the recipients, budget allocation, and potential gift ideas. This will help avoid impulse buys.
Be thorough. Include all possible expenses in your budget. Set aside some additional funds for unexpected events, as they can accumulate quickly.
Keep an eye out for sales and discounts throughout the fall to buy holiday gifts at the best prices possible.
Challenge yourself to find the best deal.
Holiday Money Tip: Plan for groceries and beverages.
Over the years, I have hosted gatherings with fun menus and exciting food options, some requiring more planning than others. This holiday season will require a lot of creative planning.
Below are some useful tips for effectively handling this area:
Choose a planning method that works best for you, whether using a calendar, notes app, paper, Excel spreadsheet, Google Sheets, etc.
Add your events to the calendar, including any impromptu gatherings. Note the expected number of guests, dietary requirements, and potential menu options.
Review last year's expenses by examining past credit card and bank statements available through online banking.
Set a budget for the entire season, including New Year's Eve, aligning with your financial situation. Take into account any seasonal fluctuations in food prices and decide on a maximum amount to spend, considering how much you are willing to exceed it by (e.g., no extras, 2%, 5%, etc.).
Plan your meals and snacks to create a precise shopping list that minimizes impulse buys and reduces food wastage. Consider substituting ingredients or adjusting recipes to cut costs without sacrificing quality. This year, I will be using less chocolate because the cost has gone sky-high!
Make the most of holiday sales and promotions by checking store flyers, setting alerts, and utilizing loyalty programs to create fun party menus.
Consider pooling resources with friends or family to take advantage of bulk discounts. Sharing a big bag of chocolate chips with my daughter will work.
Holiday Money Tip:
Start saving in January:
Total your expenses by category.
Divide the total by 12 months or 26 paychecks.
Set up a BigBill or Christmas savings account.
Establish an automatic transfer for each paycheck.
Get ready to excel in 2025!
You can efficiently handle your financial obligations and steer clear of debt through proper planning. The funds saved by avoiding borrowing expenses and credit card interest can be allocated to other important priorities in the upcoming year. Push yourself to make wise financial choices, and feel free to share your achievements with me, big or small. You can do it!
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