At this time of year, people are making lots of plans. Some prepare for quiet celebrations at home with family and friends, away from crowds, and others plan for festive nights out on the town. How do you anticipate spending the holidays?
Amid all this revelry, will you take the time to review your financial plans for closing out 2024 and moving into 2025? Here is some advice to help you reduce your holiday stress and lay a solid financial foundation for the coming year:
1. DO NOT ALLOW HOLIDAY GIFT GIVING TO CAUSE MONEY STRESS
- Decide in advance how much money you can afford to spend on holiday giving. Once you make your decision, stick to it.
- Review the list of people you plan to buy for and examine your gift giving motives. Are you planning to buy for them out of obligation or joy?
- Can you afford to purchase the gifts on your list? Decide before you begin shopping if those items on the list are worth going into debt or stretching your budget. Set a spending budget and stick with it.
- Be creative with your gift giving. Consider handmade gifts and remember they don’t have to be perfect. A simple, heartfelt gift can be worth much more than an extravagant gift you can’t afford.
- Involve your children in buying or making gifts for others.
2. CONSIDER YEAR-END CHARITABLE GIVING
- Take the time to identify things you are deeply passionate about, your life experiences, values and motivations. Consider how you can align them with your charitable giving.
- Is there a charity that serves a community that is dear to your heart? Reach out and ask how you can volunteer your time or make a financial donation.
- Think about where you can do the most good with your time and money. Think local. Think about smaller charities.
- Charitable giving is about more than just giving money; think outside the box.
- Adopt a family for the holidays. Ask a local school or church if there is a family with financial needs. My family has done this, and it’s very rewarding.
3. REVIEW 2024 AND LOOK TOWARD 2025
- Take the time to review 2024, and be real with yourself about your financial situation and outlook.
- Admit the financial mistakes you made in 2024.
- Develop a plan to help you avoid the mistakes of 2024 in 2025.
- If budgeting and properly managing your finances is a struggle for you set aside your pride and seek help from a professional.
As the saying goes, the definition of insanity is doing the same thing repeatedly and expecting different results. No one can make the changes for you. Your decisions will impact your future and the future of those you love. Choose wisely.
