A kind of money madness seizes people this time of year. It’s Black Friday, Boxing Day and all the days in between and it’s expected to be worse this year. Pent-up demand from pandemic restriction is ready to explode.
The president of Castlemark Wealth Management, Robyn Thompson joined us this morning with advice on how to manage your finances.
Thompson says about 60 per cent of people will be returning to “brick and mortar stores” this holiday season. People in Ontario are expected to spend about $863.
“Retailers will do anything at this point to separate you from your hard-earned money,” said Thompson. “You need to put a plan together and the first step is to take a look at your spending and put a leash on it.”
Make a list and check it twice. Thompson says to think about who you are purchasing for this holiday season and start researching some of the gift ideas you have online. From there, you can compare prices and make a plan of attack before stepping foot into a store.
For impulse-buyers, Thompson recommends leaving your credit card at home and only bringing your debit card. This way, you are only spending money you already have.
She says many people who use their credit card to impulse-buy can run into something she calls “retail remorse.”
“[Retail remorse] is when January comes along, you get your credit card bills, and they’re too high,” said Thompson. “you need to stick within your plan so you are able to go into the next year with a fresh start on your finances.”
Thompson says it is a good idea to talk to the people you are buying gifts for so you can set a price limit.
“If you have an uncontrolled limit, it can get out of control,” said Thompson.
The holidays not only bring gift buying, but they also bring parties, self-buying, decorations and more. Thompson says these can easily make you go over your budget.
A budget does not have to be constraining. She says it is more important to focus on buying gifts for friends and family responsibly so you don’t find yourself in a tough position where you can’t afford them.
