December for many of us is a magical time of year. The malls are bustling, the kids are excited and the diet gets an overhaul with all sorts of tempting sweets, treats and, of course, turkey stuffing. Unfortunately, for quite a few families the holidays can also be a stressful time of year.
If you’re already struggling with debt and an unbalanced budget the holiday season can leave you wondering how you can make it through. As a Licensed Insolvency Trustee, when I meet with people this time of year who are struggling with debt I try to be optimistic and let everyone know that with a little planning you can survive the holidays without adding to your debt.
Focus on what matters
Holiday TV specials, lifestyle and cooking shows, and social media can spin most adults and children into a spending frenzy. By viewing your holidays through someone else’s lens we can often get caught up in spending money we don’t have, and using credit to keep up with those around us.
If your finances are stretched this year, try to avoid overspending by keeping it simple. Focus on spending time with family and friends instead of spending money on them. A cup of tea with a loved one you don’t regularly visit is often appreciated more than a small gift.
Use the holiday season to relax, reminisce and recharge for the new year ahead.
Create a spending plan
A holiday spending budget is an important tool for getting through the holiday season without piling on credit card charges.
When creating your plan make sure you include all the holiday costs not just the gifts you will buy. Wrapping paper, scotch tape and cards all add to the holiday costs. With a spending plan in place you also will avoid the last minute impulse purchases that are notorious budget busters.
Keep it simple or use an elaborate spreadsheet — it’s your choice. Once you’ve put together a holiday budget, just make sure to check it throughout December to ensure you are on track.
Look for opportunities to cut holiday costs
Armed with a family-focused holiday agenda and a spending plan, the final step in getting through the holidays without adding to your debt load is to search out ways to cut holiday spending.
Look for free festivals and community-based events to enjoy with family and friends. Organize baking exchanges and potluck meals. And look for gifts at stores that provide gently used items, like sporting goods for your children. The reality of buying brand new gifts for children is that these items often end up being used a few times, only to be outgrown by next year.
All of these options are great ways to enjoy the season and keep on budget. For more tips on dodging debt during the holidays, read last year’s Credit Coach Blog.
One final thought…I hope you enjoy the holiday season and thank you for your interest over the past year.
Jayson Stoppel is a Licensed Insolvency Trustee and Chartered Accountant with BDO First Call Debt Solutions. With over 17 years in practice, Jayson assists individuals, families and companies with financial difficulties in Thunder Bay and throughout Northwest Ontario. To reach Jayson by email: JStoppel@BDO.ca
