The key to a happy Christmas

Maggie says '9 weeks till Christmas. I need a plan.' 

It’s only 9 weeks until Christmas.

Traditionally Christmas is a time of year when we love to catch up with family and friends and reflect on what those close connections mean to us.

Unfortunately it seems more and more prevalent in the world of rampant commercialism that we now live in, contemporary society measures Christmas in terms of the level of retail spending at the pre and post-Christmas sales.

I have absolutely no wish to be seen as the Christmas Grinch, and as with most of us I get great pleasure out of witnessing the joy some presents under the tree brings to my own kids on Christmas morning.

However, what I think has been lost in the relentless nature of modern marketing is the capacity for people to recognise their spending limits, and then feeling ok (not pressured by society) about choosing to spend within their means.

Buying something at the post-Christmas sales because it was 50% off is not a reason in itself to buy something that you don’t really need. I would argue that if you didn’t need a certain item the week before Christmas than you probably don’t need it the week after Christmas.

Furthermore, no matter the price paid an item isn’t cheap if you are still paying for it 6,12,24 or 36 months after you first bought it. Unfortunately too many of us fall in to the trap of using credit for Christmas shopping. The residual debt of a Christmas and post-Christmas shopping binge is often one of the key factors in people experiencing cash flow and budgeting issues into the New Year.

Using credit for Christmas shopping, combined with the expense of a summer holiday, followed up by back to school expenses in January/February, followed by rates bills in February is often the catalyst for people getting the feeling of being overburdened by their financial load.

As with most things in life the key is planning.

I mentioned earlier in the article I have no wish to be seen as the Christmas Grinch. Creating a manageable budget, and understanding the difference between a need and a want is the key not only to a happy Christmas, but the key to financial peace of mind throughout the rest of each year.   

Empower Money Management can help with creating a manageable budget, and provide you with ongoing coaching to assist achieving financial peace of mind.
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Contact Leigh today www.empowermm.com.au; leigh@empowermm.com.au