Have you ever calculated exactly how much you spend over the holiday season? It may be easy to add up your gift purchases, but have you considered all the extra expenses for holiday meals and clothing, parties, hostess gifts, cards and gift wrap?
If you have never added up all your expenditures in relation to the holiday season, take the time this year to track everything you spend in relation to the holidays so you can work that amount into your budget for 2022. Once you know the total amount – divide by 12 and set that amount aside every month in 2022 so you are prepared next year.
Now, before you run out and shop this year, keep these holiday spending tips in mind to minimize any regret when bills need to be paid in the New Year:
- Make a list of who you would like to buy for and how much you would like to spend. Add up the total for everyone and make adjustments if the total is above your means.
- Be creative – a homemade gift, baked good, or good deed can save you money while adding a personal touch.
- Check online for sales – research the cost of items before purchasing to see if on sale at another store.
- Don’t wait to shop last minute when you may be paying full price.
- Avoid “buy now and pay later” deals unless you have the money in your account to pay in full when the amount becomes due.
- Share party cost – don’t feel like you have to do it all. Host a pot luck dinner or ask friends to bring beverages.
- Look for free, family events over the holiday season – skating, exploring festive light displays, or wrapping presents for a charity.
Make the most of the holidays this year by safely spending quality time together. Wishing you all the best this holiday season and in 2022.
By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency
and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)
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