Christmas and Your Three C words!
-By Darren Smith
The lead into Christmas and the holiday period, whilst full of joy can also have a significant impact on financial and holistic mental health.
This year does feel a little different. For many we are coming through a period where the C words that have dominated and influenced our mindset and behaviours have been COVID, CHALLENGES and CRISIS.
Personally I would like to change the conversation and bring our focus back to a different set of C words. COMPASSION, CAPACITY and CONTROL, particularly how it relates to managing our money.
The last 18 months has been a wake up call where there has been time to reflect on what makes us a better human being and what is important. It certainly is not about many of the materialistic things that get paraded in front of us as we approach the festive period. The retail nudge is real.
In most part it should be about the social connections and how we feel and make others feel during this time.
There are new pressures lurking this Christmas with the urge to splurge on wants rather than needs. The tension is always there but our internal voice will be a little stronger this year, telling us that ‘we deserve it’ after what we have gone without for the last 2 years.
In terms of the first C word – Compassion lets be mindful that some families may be struggling with finances and or social connection. Making that little bit of extra effort could make a huge difference. Reach out and be mindful.
The second and third C words are about lifting our awareness to what our capacity is to take on new commitments and focusing on what we can control. We can have high impact and focus on controlling what we do and where we invest our time and money. It is a time where many of us catch up with our friends and family and recharge the batteries which has a positive impact on many elements of wellness.
The good news is that it is not to late to manage this tempting period in terms of spending by knowing our financial capacity and directing it to what is important and needed. As part of the ongoing financial education workshops we deliver in workplaces, it has been evident that with a few basic principles and a little guidance people can achieve improvements.
Whilst the below steps may sound simple, it does require focus.
10 tips to improve your financial wellness during the festive period
Focus on time with family and friends not the materialistic gift itself. Our time is the most valuable gift we can give to others.
When spending time with family and friends focus on activities and venues where you can have fun but limit the cost. For example, take advantage of the parks and beaches that we are blessed with in Australia.
Go to your existing bank if you have a loan and ask for a better rate. Better in your pocket than the banks.
Look at group membership discounts you may be entitled to. Quite often you can get 5 - 10% off common gift cards that are purchased for gifts.
Have a set budget to limit spending during this period.
For the creative spirits – personalise a handmade gift. It has so much meaning when people know you have dedicated time and effort for them.
Consider extending an invitation at your table to someone who may be spending the period alone or make a small charitable donation to ease the burden for someone else.
Pool resources between families and friends by sharing the cost that comes with family events. Work together and agree what each person’s contribution will be.
For the large families – pool resources where there are many family members in terms of gifts. For example, one gift per child rather than each family purchasing individual gifts for everyone. Secret Santa between families is a great way of doing this.
Review what you don’t use or don’t need and sell it to generate some additional cash or donate it to a local charity.
There are many more practical things that you can do to manage your money and the stress that comes with this time of year to a manageable level. For employers that are focused on wellness programs for their staff, there is a fantastic opportunity for you to incorporate programs into your workplace. If this is something you would like greater detail on then please contact Financial Wellness Matters through our website or myself, Darren Smith directly via LinkedIn.