5 Money Management Tips for Christmas

5 money tips

It is Christmas time once again! The favorite holiday of Filipinos. It has been said that the Philippines has the longest Christmas celebration all over the world. As soon as BER-months arrive, we could hear Christmas carols being played. Decorations are being set up in every house.

In line with the Christmas spirit of giving, there comes a long list of inaanaks. Wealso exchange gifts in every Christmas party we attend. After all, Christmas only comes once a year so we might as well enjoy it.

Gift giving is already part of our culture. And there is nothing wrong with that. But Christmas spending left unchecked can get out of hand. You may end up starting the New Year paying debt incurred from the holidays.

The same way that you are aware of the results of eating all the holiday hams, queso de bolas, and lechon, approach your Christmas spending with the same kind of awareness to the results.

Here are some tips to make this a season to be merry:

1. Set a Christmas budget

As soon as you receive your 13th month pay and Christmas bonus, decide how much you are going to spend for the holidays. For example, you can have a separate envelope for each: gifts, noche buena feast, Christmas party and/or vacation. Do not forget to allot for the New Year celebration too!

2. Spend within your means

Make sure that you stick to your budget and spend only within your means. Never ever touch your investment and emergency funds for your holiday shopping. Think of all the hard work and discipline you had the past months (assuming that you have started investing). Do not spend it altogether in one month. Remember, no touching of emergency fund! No gift is an emergency.

3. Always pay in cash

As much as you can, try to purchase holiday gifts without using your credit card. This way, you are more likely to purchase only what you can afford. Save yourself any regret in January when you overspend buying expensive gifts.

4. Make a list

Just as Santa makes a list of who is naughty or nice, write down who will be on your list too! Decide how much you intend to spend on each person. If it exceeds your budget, you have a few choices: spend less or reduce the number of people on your list.

5. Avoid freebies

SALE and freebies are rampant this season. Never make a purchase based on the freebie. As we always remind everyone, nothing is for free. You are still paying for it one way or another. And regardless of how much you will save on a sale item, stick to what you can actually afford.

We are not trying to make you a Christmas Grinch. In fact, these tips will set things in order as you approach the holiday. Knowing how much to spend and how will you spend it will give you peace of mind because you do not have to worry about overspending. This makes you happier and more present spending quality time with the ones you love.

Happy Holidays!

Question: What other tips can you suggest to avoid overspending this Christmas season?

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  1. says

    Think of personalized, less expensive gifts instead. The person who receives it will appreciate it more =)

    And if you can lessen or combine christmas parties with other events (such as bday celeberation, promotion), that would be more economical =)

  2. Katherine Cheng says

    Yup, I agree to all of you. avoid spending or getting from ur savings, insurance funds, investment funds and emergency funds.

    thanks for all the suggestions.

    more power

  3. Kimberly L. Landicho says

    I’m done with my early Christmas shopping! Just an additional tip to what was already mentioned in the article, I would also suggest that you do a “Window Shopping” first prior to the actual thing. After your window shopping/canvassing, list down the prospect expenses you might incur during the real shopping. Canvassing helps you adjust on your purchases upfront allowing you to maximize and stick to your budget. Having a wishlist generated from canvassing also helps in getting rid of impulsive buying.

    As a nugget of thought, you don’t need to be a grinch this Christmas in the pursuit of sticking with your money mantras. Investing in a remarkable memory for your loved ones through giving pays an invaluable interest. After all, Christmas shopping is spending for the priceless joy of making others happy. Nevertheless, making use of your money management powers will save you from crossing the line of overspending. =)

  4. Cecille says

    Yes, it’s true! we don’t need to spend too much this Christmas. We should start learning on how to save. It will helps us.

  5. mel reyes says

    i have a “contrarian” approach: buy only during sale. i don’t know why finance gurus are fond of castigating sales when you can buy goods at the mall sale at hell lot cheaper prices. and also, with your credit card, you got freebies man, like for metrobank you got free mcdo treats for every 2k purchase. then just pay it right away, so what’s the problem with that? i also don’t believe in “scrimping and saving”, as that would make your life miserable, according to adidas: “unscrooge yourself”. i like what kiyosaki said: “expand your means” rather “live below your means”. savings is not good if it’s parked at a measly 1% per annum in banks minus withholding tax—i mean, that’s pathetic. banks would be happy but you won’t. even bonds with 6% return? holy crap! save and invest—that’s the best mantra to follow. and shop till you drop, but during sales only!


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