Every year the holiday season comes along, and love it or hate it, it costs money. For some reason, even though it shows up every year, we don’t plan for it!

sale-sale-saleCanadians will spend just over $1800 on gifts and other holiday spending this year, up from $1610 last year, according to a recent BMO’s Holiday Spending Outlook survey.

In the RBC Canadian Consumer Outlook, consumers reported that many plan to fund their festivities with savings (56%) or credit cards (24%). Another 23% reported that they haven’t thought about how they will pay for their holiday spending.

About half of us either don’t have a plan, or will pay for the holiday spending on credit cards. With no plan, spending will generally go on credit, and much of it will not be paid off for months, increasing the costs of the holidays with the interest being charged.

Instead of creating a huge dent in your credit card and a Christmas hangover, consider making some commitments to yourself about how the rest of the shopping and season spending will go.

Commitments for the holiday season:

  1. I will make a budget, deciding in advance how much I will spend this season.
  2. I will spend according to our bigger family goals instead of our current wants.
  3. I will shop from my list and stick to my plan.

Making some clear commitments to yourself and your bigger plan will make you much happier and richer in the long run and might just remind you of the simple joys of the season.

Need help with the plan? Grab the holiday planner here.

P.S. What if you were to make a commitment that next year will be different? Maybe 2014 is the year where you figure it all out and finally have a plan, so that next Christmas you have money in the bank and can pay for everything with cash. Join me on my upcoming webinar to kick start your plan. www.financialf-words.com

© 2013 www.karencollacutt.com

Want to use this article in your ezine or website? You can, as long as you include this complete citation with it.
Personal finance expert, Karen Collacutt is founder and CEO of Make Friends with Your Money. Karen works with ambitious people who are making good money but are wondering where it all went at the end of the month. She helps her clients to get clear on their money life challenges and opportunities, matching their money to their goals. They build a plan, confidence and peace of mind around their money.

Certified Money Coach and Certified Financial Planner, Karen brings over 15 years of finance and business experience to her clients. Coach, speaker, author and change catalyst for those ready to create a positive and empowered money life, Karen delivers a fresh perspective on how to make friends with your money. www.karencollacutt.com.

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