Mortgage Blog

Don't Let Christmas Spending Knock-Out Your New Year

December 4, 2015 | Posted by: Kelleway Mortgage Architects

    Christmas is a fun time for spending, especially on gifts for loved ones.  However, if you indulge too much in using your credit cards, that can create problems later on.

     In the spirit of the season, and not to be Scrooge-like, here are a few tips to read on how to avoid over-spending on festive fun and gift giving.

          - Checking your Gift List
          - Alternatives to Gift Giving
          - Ways to Pay
          - Checking it Twice

     Write down all the names of people who you would like to treat specially at Christmas.  Then organize the names on the list according to the following.

          - Definitely give a wrapped gift
          - Definitely give a token of appreciation
          - Definitely enjoy some time together instead of giving a gift

Alternatives to Gift Giving....

Who’s left on the list?  Do you really need to give them a gift or could you contact them and suggest an alternative to gift-giving?  You may be surprised at the number of people who will welcome that call. And, sometimes the call is the gift!

Here are some alternatives to ponder.

1.  Suggest a get-together or an outing where everyone pays their own way  (a movie, a theatre play, a restaurant meal, coffee shop visit, a local festivity/entertainment or just an evening walk to see festive lights).  An online search for “Festive Events, (Your Area), December 2015” will give you some ideas.

2.  Suggest giving wrapped gifts only to the “children”, those 18 and younger

3.  Suggest drawing names from a pool of adults so that you give a gift only to the name drawn and not to everyone

4.  Suggest giving $5-$10 hand-made, recyled or joke gifts

5.  Suggest a gift swap game (everyone brings one gift and everyone receives just one gift)

6.  Host a baked goods, ornament, craft, liquor or other “themed” exchange party

7.  Suggest participating together in a community charity or fundraising event

Ways to Pay...

Be inventive with how you pay for the gifts you do buy.

Reward Points.  How many credit cards or rewards cards have unused point balances that you can convert to gift cards or gifts?  Cashing in your points and using gift cards is like going shopping for free!

Unused Gift Cards, Certificates or Coupons.  Have you received gift cards, certificates or coupons that you could use to buy gifts for others?  Do you keep them all in one place so you know what you have and can track any expiry dates?

Cash or Debit.  Pay for items with cash or debit and avoid accumulating credit card charges and  compound interest on unpaid balances.

Pre-Determine a Budget.  Commit to a spending limit total and budget per person, then stick to it.

Wrapping and Delivery Costs.  Consider the total cost of the gift.  It can be surprising how wrapping and delivery costs can quickly morph a $20 gift into a $40 one.

Shop Online.  Purchase items from trusted online sites, select the gift wrapping option and then have the wrapped gift sent directly to the recipient.

Checking it Twice...

Shop with a Checklist.  Bring an ongoing checklist with you (either paper & pen or on your mobile device) and check off purchases as you make them.  There’s an app for that...Apple or Android.

Track Your Spending.  This may not be fun but it will highlight how much you spend in relation to your pre-set budget.   Collect, bundle and track all your gift and festivity related receipts in one place and then keep a running total.  This practise also makes it easier if you have to return a gift for some reason.  Perhaps sipping a glass of something while doing this task will make it more satisfying?

     The whole point of the above is to be real about your gift-giving so that credit card statements do not become unwelcome presents in the New Year!

What's the Next Step for You?

1)    Keep us in mind and on hand in case anyone you know runs into the same sort of situaltion.
2)    Share this post with your friends and family because you never know when the info could come in handy.
3)    Call or Email Us just to connect and get started talking about your plans. (see below)
4)    Sign Up for Glen's Perspective newsletter > Click here

Glen Kelleway, BSc, AMP, Senior Mortgage Planner & Owner

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