A different kind of Christmas – Let me check twice…your holidays financial decisions!

Here we are in December! A year felt fast-forward, with financial decisions to manage and holidays as ads would say… NOT TO BE MISSED, not even this year! 🙂

But what do we do when a simple, deeply religious celebration becomes extremely commercial, leading to unfounded expenses and so much consumerism?

From year to year, every beautifully decorated corner marks the idea that something is missing, and you should buy more…!? Christmas sells, let’s be honest, because it comes with the incredible: “Well, at least once a year … to feel, to have, to put on all the 700 little lights?”

The financial coach is a friend of Santa Claus. Let’s think about it: They both love planning, lists, and gifts dedicated to how good you’ve been…good about splurges, overpriced vacations, and impulse investments. We don’t know if Santa turned to Crypto, but we tend to think not?!

A new gadget, even a funky new pair of themed socks, are on the list, but debt worries and financial worries shouldn’t be. Unfortunately, once the excitement of Christmas and the Winter Holidays wears off, some of us could be facing a budget gap as big as Santa’s sack.

Let’s see what the financial coach talked to Santa about how we give Christmas what Christmas deserves without debt and huge holes in the budget afterward.

So how bad is the Christmas debt problem? Since there are few studies in our country, let’s take a look at those of Great Britain in 2018 when the recession had not yet hit, and neither had Brexit. Almost 8 million British said they are worried about January finances because of the festive season. That means 16% of the population overspend at Christmas, then struggle to make up for it in the early months of the following year.

From the list sent to Santa by children or relatives up to the 4th grade, to travel agency deals for 2023, or how many people you’ll have around for Christmas dinner, organization, and planning make all the difference. It would also be recommended to avoid food waste.

The figures place Romania in the middle of the European ranking of countries that send food to the bin, 70 kg at the last analysis in May 2022, according to the number of kilograms per person/per capita.

“A new legislative project aims to reduce food waste in Romania by half, by 2030. It comes at a time when inflation has reached very high values, and experts are talking about an imminent global food crisis.”

Review your finances before making any holiday decisions, take a minute to check:

• How much do you normally spend?
• How much do you and your whole family save each month?
• Are you commonly investing?
• Have you met your financial goals set by the end of the year?
• Understanding your overall financial well-being is a great habit to get into. It will help you be realistic about how much you can spend this season.

See the total and make sure it’s an amount you’re comfortable spending. If not, repeat the calculations until you arrive at a more reasonable amount.

Extra tip: Leave some room in your budget for an extra gift or two, just in case something unexpected comes up.

Careful planning is probably the most important thing you can do for your and your family’s budget to keep festive spending under control. Once you know how much, whom you need to buy for, or what you need to budget for, clarity about how much you can afford to spend will put a different stamp on your actions.

When we say planning, we also say writing. Write everything down to keep track. Don’t forget to include hidden costs such as food on the road if you’re traveling to visit relatives, decorations, festive packaging, and the journey itself. Thus, making financial decisions on the eve of the holidays will no longer seem difficult.

Another advantage of planning for Christmas is that you’ll have plenty of time to shop for the best deals. They start long before the holidays. This could mean shifting from the crowded mall to finding the perfect gift online.

There can be a lot of pressure at Christmas to participate in expensive activities, but there are plenty of ways you can tick off experiences without straining your budget. You can take walks in nearby less marketed towns to see the festive decorations and pick local products.

Besides presents, one of the biggest expenses is the Christmas lunch or dinner. Plan the menu whether we are talking about 3 or 12 guests. Don’t leave invitations for the last minute Shop early. Prices have hidden increases of up to 15% during the holidays.

Something less common in our country, that also helps the host and balances the budget, is that each guest cooks or brings something. Make an open list of needs, ask about food allergies, and make small portions for children. Don’t back down from providing a hot meal to those in need, setting an incredible example for children.

Only make loans that you can “afford”. Resist the urge to spend money you don’t have. It is much better to live within your means than to enter the new year with financial difficulties.

Read the fine print! From contracts, labels, offers, etc. If you decide to borrow money during the holidays, even for that long-dreamed-of home, double-check all the terms and conditions.

Put a moment of planning your savings for next year on your Christmas list. Haven’t been able to start your Christmas savings as early as you would have liked? Start thinking about next year and better plan what you can put aside each month.

The sooner you address a potential problem, the sooner you can take steps to fix it. This will reduce your stress and save you money in the long run. Visit the help section!

Maybe it’s not time for the latest gadget or the second red dress for the office party. Maybe it’s the perfect time to make sensible financial decisions this holidays season.

After such a challenging year, make peace with what you have, bring peace to the family, bring joy everywhere, put good words over everything, and fix where it needs to be fixed. Buy experiences, not things. Don’t forget to enjoy what you live, not just what you buy. We turn on the lights on your budget and smart investments!

The month of financially happy Holidays!… It’s officially opened!…