Christmas spending can leave you with a financial hangover! Since Black Friday is not actually on Black Friday this year, but all season long due to COVID-19, I am giving you three tips to keep in mind. Many people struggle with budgeting this time of year and tend to go overboard feeling the need to give to everyone. If your family is not gathering this year due to the pandemic, that feeling of wanting to give may be stronger this year. Keep your goals in mind and your cash flow in check by following Santa’s age-old advice of making a list and checking it twice!
Don’t overspend and don’t feel compelled to buy gifts for everyone in your circle. With the pandemic, many folks may feel the need to ship even more gifts this year to let people know that they are not forgotten. Remember, a nice letter or card with a note is much more personal and will be appreciated during this time. Schedule a special Zoom meeting, extended phone call, or think about something nice you can do for your intended recipient. For example, if you have a senior family member or friend, consider arranging a nice meal delivery for them or grocery delivery. Definitely heed Santa’s advice about that list – make a list, and check it twice!
Don’t feel pressured to give beyond your means. Generosity is amazing and should be encouraged. Most all of us feel euphoric when we give a gift. However, you should know in advance to which charities you want to send a monetary donation. Keep in mind that with the 2017 TCJA, you may no longer qualify for that charitable tax deduction. Food banks in particular this year need donations due to the pandemic and on-going under-employment and unemployment. With personal gifts, set realistic spending amounts per person and keep in mind you may have to budget for shipping this year.
Do set a spending amount in advance. The amount you plan to spend and donate this holiday season should be already accounted for in your annual budget. Don’t be tempted to spend beyond this amount even if you need to adjust the per person amount this year due to the pandemic and need to factor in shipping or delivery.
Year-end giving and spending really begins in January, so December and the Christmas gift season shouldn’t come as a surprise since it happens every year. Start in January saving monthly for the additional expenditures you have this time of year. Make those charity donations monthly or quarterly; after all, they need the money year around, not just in December.
Being proactive and setting aside smaller cash amounts monthly can help your budget and be a reminder to carry the good cheer of the holidays with you daily and not just at year-end. It can also keep you from having a financial hangover after the holidays.
If you need budgeting help, or a debt reduction plan, call me! As an independent Certified Financial Planner™, I can help you make decisions and layout a plan for year-end giving and holiday spending. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #holidayspending #income #debt #savings #CFPPro #moneyhabits #giving #charity