Posted on Monday 09 November 2015
Understandably, financial planning may not be the priority for many Canadians during the holiday season. Most shoppers spend the highest amount of money during this time of the year, often overlooking their budget and spending beyond their means. That's why the demand for cash loans rises exponentially during these times.
Many people take out short-term loans without even knowing the cost of taking a loan out. This leads to financial depression following the holidays. It's important to remember that the Christmas cheer isn't about how much money you spend or what gift your big brother is getting. Canadians are generally accustomed to splurging, but it is time to pull those purse strings tight.
As a person in British Columbia seeking to live without incurring more debt, you need to remember that the holiday season is one of the easiest times to rack up debt. Thus, you must learn to be financially responsible during the holidays without feeling deprived. There are several creative ways to plan your holiday spending and still have a solid financial standing when they are over.
The holiday period isn't about how much you spend, but about spending time together as a family.
The following five tips can help Canadians gain financial control despite the holiday period.
As always, planning and sticking to a budget is the first strategy for financial control. During this time of the year, your main goal should be to reel in your spending and hold yourself accountable for unnecessary purchases. Keeping track of where your money goes is the only way to get a good grasp of your finances.
The good news is that many more Canadians are learning how important a budget is. Over 2/3 of Canadians are now prepared to manage a holiday budget to become financially responsible. However, if your budget isn't working for you, you may need to reevaluate your priorities and design a new one.
Understandably, many people struggle with this. That piece of plastic is mighty convenient when you're out holiday shopping. However, it isn't so pleasant anymore when the first of the year bills start rolling in.
You need to train yourself only to charge what you know you'll be able to pay for when due. This will ensure you don't incur more credit card debt, and your finances will remain in top shape. You can also search online for discounts and printable coupon codes you can use on products. Some coupons are even suitable to use all year long. Not only can this save you money, but it can also guarantee you stay within your budget without compromising on the specific gifts you have in mind.
Retail-Me-Not is perfect for Canadians across British Columbia who do a lot of their shopping online or are loyal to specific retailers. This is also an excellent way to save all year long.
You can get your children and young adults engaged in financial literacy courses for free. Not only can these finance courses help you learn how to manage and keep up with your finances during the holidays, but they can teach the younger Canadian generation about finance. Your kids can learn how to meet financial obligations and control their spending before these critical issues can affect their credit score later in life. Besides, it will help them to also understand and agree with the financial decisions you take.
Moreover, young adults who are money wise understand how lavish spending can lead to a life of strife. They can also use this knowledge to influence older family members to make smarter spending decisions.
Financial literacy is growing in importance across Canada, as most Canadians can do with better money management skills. This is especially important at one of the more expensive times of the year. You need to start planning for the future rather than living in the moment.
Again, while the holidays can be exciting, it doesn't have to put you in a financial drought after. You can't wholly avoid spending money, but you can be more thoughtful about it. Try to make your holiday more about the priceless and free things, rather than the luxurious gifts.
Having priorities is essential, no matter how much money you have. Even with the possibility of a universal basic income in Canada, your financial growth still mainly depends on how you manage your expenses. Once you begin living on the correct financial path, you'll find yourself more balanced and happier. You'll also enjoy the holidays better. In fact, you'll enjoy the whole year once you begin to grasp the concept of financial control.