Articles abound about managing your finances, especially during the yuletide period when sales gimmicks wear down your fragile defenses.
The key issue is in making up your mind. The moment your mind is made up, the rest is easy. Come up with a holiday budget, and stick with it. Experts say the best time to do Christmas shopping is between October 1 and December 1. I agree. It is not a law. The point is, you get to make a budget and execute it before the “madness” sets in.
It is really hard to walk past banners screaming “Buy one, get one free!!!”. That is why keeping your head is key. We know based on the benefit of hindsight that no matter how much you “save” through such deals you end up overspending and out of pocket. Sometimes you end up “saving” outside of your budget. You find yourself with an item you never intended to buy when you left home.
First of all, decide how much you want to spend on gifts this season. Then make a gift list. All the folks you want to give presents this holiday season. Attach a dollar value to the gifts. Here comes the moment of truth. Sum it all up. Viola! You have overshot as usual.
You are now faced with two options: increase your budget, or reduce your gifts bill. If you are serious about financial freedom, the way to go is to cut down on your gift list. Cut down on the dollar value, and trim down the list. It would be really nice to give a gift to all the good folks you know, even the janitor that always welcomes you with a beautiful smile. The fact is, you are not there yet. Sometime in the future, you will get to a point where you ask your personal assistant to help you make up a list, and then pay for/dispatch all the stuff. You are not there just yet.
I know you always give Aunty Margaret a gift every year. You can send her a card, or buy her a book or novel by her favorite author. At this stage of your journey, you have to cut down on or cut out those things that are nice, but not absolutely necessary. Let your budget decide what you can, and cannot do. When you start adjusting your budget midway through the game, you are about to fall into last year’s trap.
You will be amazed how many gifts end up at eBay and other auction sites by New Year “brand new unused DVD Player, still gift boxed…”. The money you could have used to invest and get on with your life, lying at the rejected gifts corner. Even if the gift is a lifesaver, is it worth being still trapped in the rat race so that you can spread the goodwill at Christmas, and grumble all year round?
The best time to make up your mind is now, before the buntings go up, and the “fools rush in”. Delay is not denial. You are practicing delayed gratification. If the farmer eats up all his harvest, your guess is as good as mine what will happen next year at harvest time.
If you are still on your journey to financial freedom, your income is your seed capital, not your profits. Each time you spend, you either take a step closer to your freedom or postpone your independence day.
Go shopping armed with your approved gift list, and keep your head. It is in your hands now. You will not regret it later
