“EVEN before Christmas has said ‘Hello,’ it’s saying ‘Buy, buy.’” (Robert Paul)

Christmas is around the corner. Just a few more winks, and it’s Christmas time! ‘Tis the time of the year when people, Filipinos especially, go gaga over decorating, shopping, gift-giving, reunions and gatherings, which all require money. As early as September, malls, department stores and even groceries are already adorned with Christmas decorations while Christmas songs fill the airwaves. Admit it or not, these subtle reminders influence our buying behavior. We have an excuse again to spend, spend and spend even more.

But we have to be mindful that this season should not just be all about spending, about money going out. This season is also an opportune time for us to look into some money matters that will impact you and your family, not only this holiday season but beyond.

Review and reassess. Take a pause and see if you were able to stick to the financial plans/ budgets that you had set at the start of the year. Were you closer to your financial goals this year vs last year, or did you fall short big time? What were the contributory factors… was it your spending habits, lifestyle, saving discipline or the goal itself? What are the changes and adjustments that you must make to achieve it this time? What support system do you need to help you stick to your plans? We are already in the recovery period, post-pandemic.

This holiday season, take time to reflect, recommit and strengthen your finances for the coming years.

Plan and communicate. The holiday season does not only signal the end of another year but brings a new one: a new year, a new start, new dreams, new goals, new plans. This can be the best time to share and talk with your family members about your family’s financial goals. What do you plan to purchase, or where do you plan to go for your next family vacation? Where and how can we save to add to the family coffers? Are there new goals that need to be added to your existing ones? Were there changes in your family’s circumstances, like a new addition to the family, career change, retirement, etc., that will impact your current financial situation? In my experience, it’s always a wise move to involve our children in these discussions. It makes them understand and appreciate our financial condition, contribute ideas, and cooperate on how we can achieve our goals and strengthen our family bonding.

Budget and DIY. Everything is expensive these days. Every day, our budget skills are tested and challenged. Christmas spending is no exception; it should be budgeted as well. Coming up with our Christmas gift list is no walk in the park, most especially when you have a long list of people to give gifts to and a limited budget to work on. You should have a system for budgeting; otherwise, it can be a financial nightmare. This is what I usually do… I list all the names of the people I will give gifts to family members, relatives, friends, office mates, godchildren, neighbors, etc. Then, I allocate for each one a budget. This way, I can easily determine how much I would be spending and can easily adjust if I need to in order to fit my working budget. Do-It-Yourself (DIY) is so common these days. Using one’s creativity and talent for gifts is a very good alternative for those readymade items. During the pandemic years, my daughter Abbie and I used to bake cookies as Christmas gifts for our friends and colleagues. Last year, I cooked special baby back ribs and prepared my version of fruit salad for my special friends. There was also a year when my hubby and I gifted some of our relatives and friends with our own paintings. These DIYs may have cost us a little less, but there’s so much more love and effort in each.

Make money hacks and earn extra bucks. For some, DIYs are not only gift-giving ideas but are income-generating opportunities as well. Doing side hustles is a trend among our younger generations. And the holiday season is the best season to make those different money hacks as people are looking for unique, affordable and useful gift items. These days, you don’t even need a physical store to offer your products. Almost everything is traded, sold and bought online. You just need to brush up on your creativity and ingenuity, come up with a good packaging/presentation, make it online, and you are good to go and earn those extra bucks. Who wouldn’t need extra these days?

Save and invest. Christmas is not only a time for expenses… it is also the time to receive your bonus and 13th month pay (for some, it’s even more)! But before spending them all on those Christmas treats, remember to set aside a good portion of your windfall for savings. That Christmas bonus can help you start up, build or complete your emergency fund, which we have all realized to be very important, especially during the pandemic. A suggestion is to have at least 3 to 6 months’ worth of expenses as an emergency fund to ensure the continuity of your lifestyle amidst those unexpected turns and twists. You can place the funds in a financial instrument that will provide liquidity but good rates of return. Now, if you already have your emergency fund, you can set aside a portion of your bonus to invest for your future goals, such as your grand family vacation, your dream house, building your retirement funds, or that business venture. Whatever it is for, the money coming in this Christmas, be it from your bonuses or from those side hustles, is not just for spending. But for saving and investing, especially. Talk to your financial advisor about the options available to you.

It’s so easy to be drowned or get lost in the hustle and bustle of the holiday season. But before we do, let’s be mindful of our obligation to be smart and wise with that money in our hands.