‘Tis the season of joy, cheer, bright lights, and of course, gift giving. Lots of gifts. Lots of spending. Lots of stressful shopping. Lots of expenses and debt. We’ve become a culture that buys, buys, buys and gives material gifts once a year in December. Most often, we buy gifts that have no meaning or purpose to us or the recipient, we give because we feel obligated, and as a result, cause more stress on ourselves.
Financial health is just as important as our physical, mental, and emotional health. The majority of North Americans live in debt. This means most of the people you know live paycheque to paycheque, have incurred previous debts that they can’t pay, or cannot pay their entire credit card bill. If you have a mortgage, you have a debt. If you have a car payment, you have a debt. Nobody wakes up in the morning and thinks “I’m so happy being in debt!”. It’s an added stressor that can impact our physical, mental, and emotional health. People get divorced, fraud their own family members, or commit suicide over finances. Even those that are high-income earners, earning $200K+ a year are living in debt (more expensive house, car, clothes, possessions) feel that they can afford to spend frivolously, when they can’t.
Yet, when it’s Christmas-time, we go tap happy with our credit cards, only to feel anxiety and stress toward the bills in January. It doesn’t have to be this way. What if you could create a wealth of happiness and had more this Christmas by spending less?
You can still have fun and joy during Christmas, while giving more with meaning and having less stress over finances. The money spent in a Christmas shopping frenzy adds up quickly. Think about how the extra $100, $200, or $500 can make a difference in your life and be better spent towards your personal debts. You can invest $500 into your Retirement Savings Plan (RRSP), Tax-Free Savings Accounts (TFSA), emergency reserves (for unexpected car/home expenses), or mutual funds. You can make an extra car payment. You can invest that money with the potential to grow and increase in value overtime.
The holiday season is about celebrating with family and friends and giving with intention and meaning. There is no stipulation about giving out of obligation or through materiality.
Have you ever given a Christmas card or box of chocolates to a colleague that you barely speak to and can’t stand them but yet, you felt obligated? Consider for a moment, why do you feel obligated? Is this all a thought that’s just in your mind so you can appear kind or thoughtful? I would rather my colleague save their hard-earned $10 on a card and chocolates and either give a thoughtful gift because they want to or not give me anything at all. I’m personally not offended if a peer was to give someone else a Christmas card and not give one to me. It shows that they’re living with intention and showing meaning to those that are closest to them.
Here are five ways to have more this Christmas and spend less:
1. Create a budget.
If you don’t have the cash to buy it, DO NOT BUY IT! You can’t afford it if the money isn’t sitting in your bank account to pay your credit card statement in January. Live within your means to create less stress on yourself. Starting in October or November, create a budget of how much you will can afford or want to spend on each recipient. In October, November, and December, set aside those extra funds so that you can easily pay for the expenses come January without the mental shock and stress. Determine the gifts that you’re going to purchase within your budget prior to shopping. With each purchase, keep track of the receipt on your phone or in an Excel spreadsheet.
2. Who are your ride or dies?
Create a list of the most important people in your life that you want to give a gift to and are willing to go the extra mile for. This list should be very short and sweet. It could include your spouse, children, and parents. Maybe even your cleaning lady or nanny that you feel like they’re part of your family. Spending less on everyone else means you can invest in a nicer gift for your closest loved ones or save that money and invest it in yourself.
3. What about your besties?
Put office politics out of mind. If you hate your manager, don’t buy them a gift. They could fire you the first week of January anyway. Consider who are your best pals in the office that you’d dish the extra cash and/or give them something meaningful? Like your go-to girlfriend that will appreciate a personalized mug or her favourite bottle of wine. If you’re meeting up with friends, firmly draw boundaries that there’s no need to exchange gifts. Or if you’re meeting up with friends that always exchange gifts, suggest that instead you have a Secret Santa or Greedy Santa game so that you’re buying one gift instead of four. Another idea is to suggest having a group experience instead of exchanging gifts, for example, going to the spa together. This way, you can spend your money on yourself for something you’ll enjoy and have meaningful memories with your squad. It’s a win-win situation that can save you a TON of money.
4. Purposeful gifts that mean more and save more.
Gift giving doesn’t have to be a store-bought material object. You can create purposeful gifts. Get creative and make gifts for someone that you know would appreciate it. If you’re a fashion designer, sew or knit accessories. If you’re a healthy culinary expert, create mason jar cookie kits or baked goods. If you’re a photographer, create a meaningful photo gift.
5. Have meaningful experiences.
Based on personal experience, the best holidays include simplicity and hands-on fun with family and friends you love instead of fancy catering, expensive gifts, and pretentious people that you dislike. Enjoy the company that you surround yourself with. Laugh, joke, and have fun. Hold hands and sing “Kumbaya”. Play games. Take pictures. The people you’re around shouldn’t expect material gifts and objects from you. They’ll love you for who you are and respect your simplicity and priority for your financial health.
Comments