It
takes savvy money management to survive the onslaught of fall
expenses. The good thing about the soaring expenses between September
and December is that they're predictable: Kids always go back
to school in September, Thanksgiving is always in October, and
Christmas is always on the 25th of December. Fortunately, it's
much easier to plan for events you know will happen.
How can you plan to not just survive but thrive? Use these three
steps to put together your plan: Review, Reflect, & Rework.
First, REVIEW your spending over the same time period
last year by looking at receipts, cash withdrawal slips, and bank
and credit card statements. We usually underestimate what we spend,
so checking your previous year's spending helps you be accurate
and realistic.
Second, REFLECT on whether you'll spend the same amount
this year. If you were comfortable with the amount you spent,
great! If spending got out of hand, strained your budget, or added
to your debt load, then now's the chance to commit to a new spending
limit. A spending limit ensures you don't carry costs of those
events well into the New Year, often costing hundreds of dollars
in interest.
Once you've decided what you're going to spend, the final step
is to REWORK your budget to set aside money for those expenses.
It's much easier to save a little at a time over the year and
it's never too late to get into the habit.
Try these reliable strategies for saving for planned expenses.
Earmark a bank account specifically for savings for annual expenses
like back-to-school costs, sports registrations, or holiday spending.
Start an automatic deposit of a set amount into a savings account
each pay using online banking or a pay allotment.
Don't feel you're a good saver? Try these tricks that are hard
to sabotage. Buy a gift a month to prepare for birthdays or Christmas.
Buy gift certificates or gift cards from retailers throughout
the year to help with the increased spending demands during the
holidays. You can even set up an automatic withdrawal with your
employer for Canada Savings Bonds and cash them annually to pay
for your holiday expenses.
Setting up a system takes a bit of time and practice. Security
comes from knowing you can afford what you and your family value
without getting into debt.
Tricia French
Financial Counsellor, SISIP Financial Services, Edmonton
This article is for general
information purposes only and
is the opinion of the writer.
