LET me be one of the first persons to greet you a Merry Christmas.
In just a few weeks’ time, we shall be entering the most festive days in our country: the Christmas Season and the start of the New Year. In just a few weeks’ time, we shall once again see the twinkle of Christmas lights, hear the joyous laughter of our friends and loved ones amidst the background of Christmas songs, taste the most sumptuous feasts in Noche Buena and Media Noche, and see throngs of people in malls and streets and in Misa de Gallo.
Thinking about it makes me excited and…of course anticipate the underlying expenses. Don’t get me wrong here. I am not Scrooging over Christmas. If I can get all holiday gifts, food and destinations out for free, then happiness would be an understatement. But the fact remains that we have to buy stuff (lots of them) with our money (I wish lots of them, too). And between those things, managing them wisely. Else, we get through the holidays with only our bodies bulging at the seams, while the rest of our savings as thin as that bone of a chicken wing.
With that, let me give you an early Christmas present by sharing with you some practical finance tips for the coming holiday season:
1. Start early. If there is one thing that I would really emphasize in spending for the holidays is to start early--buy your gifts early and save up early.
It’s this simple: if you have been celebrating Christmas every year, then why wait for Christmas to buy or save up for gifts? January to November affords us 11 months to buy the stuff we want to give out. And the sale periods peppering these months? They are opportunities to buy items cheaper and as much as 70 percent off.
For example, if you plan to give gifts to 10 persons, then you might try buying a gift each month. That way, it would not be too heavy on your December pocket as compared to buying them all at the same time. Or if you would rather wait for the perfect opportunity and bazaar to have your shopping, then set aside that portion of your salary for your holidays budget. For instance, if you have a budget of P11,000, then spreading it over 11 months means setting aside P1,000 per month or P500 per payday. That amount is just equal to two eating-out splurges (at P250 per eating out) or roughly five high-end coffees that you can trim down from your expenses.
Having a holiday trip? Then book flights early or look for promos, and stash away some cash for that dream vacation. The trick really is to spread an otherwise heavy budget over earlier months and avail of promos and discounts over the period.
2. Have a List. “He’s making a list, and checking it twice…” If Santa Claus has his list and reviewing it, then so should you. Making a Christmas Gift List enables you not only to identify the people you would give gifts during Christmas; it also gives you a handle on how much you are going to spend as a whole. If you’re going to give to charity, have it on your list also.
To do this, just simply list the persons that you want to give presents to and identify how much you are willing to spend for each. At this point, it would be recommended to divide your list into two categories: first, the “must-gives” who are “mandatory” to give gifts to and are usually family, loved ones, valued clients and friends, and; second, the “nice-to-gives” which are not necessary to give gifts to which usually include acquaintances, officemates or neighbours.
After having your list, simply add the total and there goes your holiday budget. If you think it quite overboard, then go back to your list and adjust accordingly (you may start with the person you like least—just kidding). You may slash off from amounts or persons from the “nice-to-give” first and then move onto the “must-gives.” At the end of the day, making a gift list gives you control over your spending and sets the pace for your budgeting.
3. Go for Value. Have more bang out of every buck. Think Divisoria, bazaars, sales, and the newest addition to the army of discounts: deal-of-the-day websites like Groupon, Ensogo, Deal Grocer, and a host of others. Divisoria alone is a minefield for accessories, knick-knacks and kiddie gift items. Bazaars and sales also churn out great buys at low prices as much as 50 percent off. The trick with these is just to be in the know of upcoming sales and bazaars, which you can check out at websites like Clickthecity.com or your local newspapers. But one thing though, hunting for great buys entail much, much patience going from one stall to another.
4. Re-Gift. Let’s admit it. Not all gifts that we receive, we like. Think fruitcake. And there are only two options for these gifts: either they stay or they go. If they stay, chances are, they would just gather dust. If they go, then it could be at the trashcan—which would be such a waste—or onto another person. The latter is called re-gifting. It is not at all tacky, if seen on the context of not hoarding things that you do not like and paying it forward to people who you think might need them or want them. The fact of the matter is, re-gifting enables us to save on otherwise small expenditure items that we would have bought if not for the gift given to us. I am not saying to have it as a general policy during holidays. But for these items, you might want to consider giving them to people on your list of the “nice-to-gives,” the persons not in your gift list but you would want to give otherwise, or save it up for other occasions.
5. Give Yourself a Gift. Don’t forget yourself for the Holidays. You have been working hard since the beginning of the year, and it is time to enjoy the fruits of your hard-earned money. You may treat yourself with a little present to yourself like a gadget or out of town trip that you’ve been saving for—as long as it does not compromise your financial goal and is part of the planned expenses. Better yet, you can start saving yourself some money for your future or start investing it. Always remember that things depreciate, but investments and savings do not; and it is best to start the New Year buried under wealth, not debt.
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Rienzie P Biolena, RFP is one of the pioneering Registered Financial Planners in the Philippines, having taken up the first RFP Program in 2005. He is a Senior Financial Advisor in Philam Asset Management, Inc. To know more about RFP program, please e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit www.rfp.ph.
