The Christmas Holiday Season is very fast approaching. And it is usually at this time of year when much cash is both received and expended by many individuals, particularly employees in different countries worldwide. This is because it is during the Yuletide Period wherein salaries, bonuses and other money-related benefits are received by workers from their employers.
As per law, companies are mandated by government to give their employees their 13th month pay at year’s end, which coincides with this Holiday Season. Some companies even give their staff 14th month pay during this time. Still other firms, who are very well-off, having performed excellently and profited much during the year, share additional cash bonuses with their employees over and above their 13th and 14th month pays.
There are multinational companies that also convert sick and vacation leaves into cash and/or money-related benefits. There are workers who receive gift checks both from their bosses and colleagues. Still other employees receive something – token gifts such as fruits, cakes, pastries, wines, among others, from other companies that they transact business with.
Income received by workers is not the only thing that changes during the Yuletide Season. Prices of products and services that can be given as presents for the holidays also do. Some gift items might go down, as evidenced by the many stores that go on sale during this period. Sales are held by shops to dispose of old types of goods and their stocks and accommodate the new types of commodities and their stocks, while earning from the sales of their old supply of goods. However, cost of some priceless and unique goods such as jewelry, antique collections, and the like, which can also be given as Christmas presents, might increase due to the decrease in their supply, as demand for them might increase as the law of supply and demand dictates.
Causes of Debt
Many individuals usually go through their annual routine of purchasing gift items for their loved ones and friends year after year without proper planning and budgeting, and ending up drowning in debt. These individuals fail to allocate their financial resources for their basic needs, savings, investments, and other expenses, which should include the amount to be allotted for buying presents. This is because many of these persons assume that their increase in income will cover all holiday expenses, forgetting that these bonus financial resources are only for a certain time period.
Most often, victims of debts are impulsive buyers who are unable to control their impetuousness in purchasing things. For such an individual, it might be advisable to avoid bringing his/her credit card and, if worse comes to worse, even debit cards when going to malls during this time of year. This entails detailed budgeting on the part of the person to ensure that only exact money amounts from his/her bank account/s are secured for his/her use within a given period of time.
Others may not have the same difficulties experienced by impulsive buyers. And yet, they might have the habit of buying gift items without first setting a limit on their budget for this activity. This might eventually force them to spend quantity of cash beyond what they can currently dispense, and ending up in debt. To ensure that one’s purchase of a gift item is worth his/her cash, it is important to consider value for money, which is one’s view of a good and/or service in relation to his/her set standards made up of quality, price, skill, suitability, among others.
One can indeed enjoy his/her financial resources and benefits received during the Holiday Season, without experiencing debt, simply by planning long-term and careful budgeting. It is important to first assess one’s behavioral patterns through the years when purchasing gift items during the Yuletide Season. After which, an individual should work on his/her funds for the purchase of Christmas presents, setting a budget limit for it.
Canvass, and if possible, purchase gift items in advance, at least a month before the Yuletide Season to avoid the Christmas rush. To help you further budget your finances, list down the names of the people you plan to give gifts to, prioritizing them based on their importance in your life. Consider 2-3 gift options for each individual, taking note of the items’ quality and prices. To further save on cost, consider buying in bulk or wholesale, potential items that can be given as presents.
Consider giving home-made presents, taking into careful account not only one’s finances for raw materials but your time in making them. An example of something that can be given as a gift during the Holiday Season is artwork. This includes, but are not limited to drawings, paintings, poems, etc., Food – desserts, snacks, etc. can also be something that can be given to loved ones and friends during this special occasion. Finally, consider surplus of presents that you get from work – extra gift checks, food packages, token gifts, etc. that you can also give as gift to items. These are some tips on how you can enjoy your financial blessings during Christmas Time, spending cash but remaining debt-free.
1st image by iosphere / freedigiphotos.net
2nd image by bplanet / freedigiphotos.net
3rd image by iosphere / freedigiphotos.net