Top Tips for Managing Holiday Spending

by Sound Choices, AGF Management Ltd.

During the holiday season, it can be very tempting to overspend – especially if you’re looking for last-minute gifts.

Here are five tips to help you spend reasonably so you don’t have regrets – or large amounts of long-term debt – in the new year:

1. Create a spending strategy

You might think it goes against the spirit of the season, but planning a budget that carefully considers who receives gifts and how much you’ll spend on them is a smart way to manage your expenses. Using debit or cash when possible also helps avoid the shock of huge credit card bills.

2. Secret Santa, One and Done, etc.

Whatever you call it, many people who are watching their spending or simply don’t like mass consumerism will agree with others in their circle to buy gifts only for one person. You can still have fun doing this and you won’t be stuck with a bunch of gifts that aren’t necessarily what you need or want.

3. Reconsider gifts for coworkers

Some workplaces have a gift exchange, either informal (e.g., buy only for close colleagues) or formal (like the Secret Santa concept above). People may do this out of obligation or to avoid looking like a “Scrooge” if they don’t participate. Casually ask around to gauge interest in gifting and if you can get together for a nice lunch instead.

4. Challenges with international purchases

Retailers bombard you with tempting sales, especially around the holidays. Sometimes the deals are great, but be aware of issues that arise with international purchases. Shipping fees can be high and you may also be required to pay duty on your purchase. The exchange rate is another factor to consider. Suddenly, that great deal can become expensive, so be careful when buying from foreign sources.

5. And a little something for yourself

When shopping for family and friends, chances are you’ve spotted something that you’d like as well. While it’s okay to treat yourself, be careful not to put your disciplined budget in jeopardy. Whether you’re buying for yourself or others, the bills keep coming just the same.

Talk to your financial advisor about effective ways to keep your holiday budget under control, so you can continue investing in your financial future. Don’t have a financial advisor? Before you start your search, read about finding the right advisor for you.

The commentaries contained herein are provided as a general source of information and should not be considered personal investment or tax advice. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change investment decisions arising from the use or reliance on the information contained here.The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.AGF Management Limited (“AGF”), a Canadian reporting issuer, is an independent firm composed of wholly owned globally diverse asset management firms. AGF’s investment management subsidiaries include AGF Investments Inc. (“AGFI”), AGF Investments America Inc. (“AGFA”), Highstreet Asset Management Inc. (“Highstreet”), AGF Investments LLC (formerly FFCM LLC) (“AGFUS”), AGF International Advisors Company Limited (“AGFIA”), AGF Asset Management (Asia) Limited (“AGF AM Asia”), Doherty & Associates Ltd. (“Doherty”) and Cypress Capital Management Ltd. (“CCM”). AGFI, Highstreet, Doherty and Cypress are registered as portfolio managers across various Canadian securities commissions, in addition to other Canadian registrations. AGFA and AGFUS are U.S. registered investment advisers. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF AM Asia is registered as a portfolio manager in Singapore. AGF investment management subsidiaries manage a variety of mandates composed of equity, fixed income and balanced assets.^TM The ‘AGF’ logo and ® ‘Sound Choices’ are registered trademarks of AGF Management Limited and used under licence.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.

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This post was first published at the AGF Perspectives Blog.