by Dave Kutcher
The holiday times are coming in hot … with just weeks away from Winter Solstice, Quviasukvik and family and friends gathering in cheer and exchanging gifts, this can be a great time of year, but it can also be the source of a lot of financial stress.
This year, with inflation keeping prices on consumer goods higher than we all want and interest rates still high enough to increase the cost of credit cards and other means of borrowing to cover the additional expenses incurred during the holiday months, people are trying to find ways to manage their situation. It doesn’t have to be, nor should it be a time for financial hardship.
The sharing of time with family and friends should be prioritized over gifts … this goes for all the time, but particularly when folks are already having a hard time meeting basic living expenses such as groceries and utilities.
Here are some strategies to consider:
1. Discuss low-cost ways to celebrate with family and friends: Engage in activities that don’t require much spending, like potluck dinners or homemade gift exchanges. When we think back on special holidays from the past, it is rare that we think of a gift we received and much more likely that the best of memories come from sharing special times with our closest family and friends or connecting to some other human beings in one way or another that touched our hearts and created a special time that will always be remembered.
2. Get comfortable saying no: It’s okay to decline invitations or spending opportunities that would be outside of your budget this year. Sacrifice tends to mean we have to make tough choices. Sometimes you just can’t do everything. Make good choices, spend time with those closest to you or find a way to reach out to others with a giving heart and volunteer your time. Engage in activity that does not cost money. There are plenty of opportunities to do so if you seek them out.
3. Establish a realistic holiday spending budget: Plan your holiday expenses ahead and stick to a spending budget that accurately reflects your ability to pay. This is not a time to be living beyond your means. Think about the months following the holidays and the idea of being strapped with paying for the overspending, should you decide to exceed your budget. Resist the urge … stick to a plan and be sure the plan is a good one.
4. Make shopping lists and stay organized: Write down what you need to buy and avoid impulse purchases. Follow the old “don’t go grocery shopping when you are hungry” motto, too. Sticking to lists and doing some homework ahead of time can save you a lot of money. It is very easy to get caught up in the fanfare and whimsy, remember to focus on the experience(s) and not just things!
5. Download apps for rewards, discounts, and cashback: Use the technology in your hands to find the best sales and/or try to earn money back on purchases where possible. Retailers are hungry for your business. Pay attention to opportunities to help complete your list without busting your budget by taking advantage of special deals.
6. Practice some self-help with the mental stress of it all: Be sure to find time to relax and manage the stress. Here is another opportunity to use your technology and download a mindfulness app or something similar that can help you keep your head in the right place. Don’t let the stress ruin your time.
Whether you are storytelling, singing, dancing or playing potlatch, have fun and stay happy. This is a time of renewal and change. Relationships are what is most important, not things. Stay safe and stay solvent!
My name is David A. Kutcher, a retired Marine Corp Captain. My business partner in the lower 48 is Richard C. Scott, CLU, LUTCF. For nearly 40 years we have been helping folks with their personal retirement decisions. You can catch us on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio and on Tuesday mornings, KFQD News Talk Radio AM 750 and FM 103.7. Frontier Retirement, 10928 Eagle River Road; Eagle River, AK 99577; (907) 795-7452.
