Financial analyst: Be wise and curb holiday spending

CEBU, Philippines - It's that time of the year again when people tend to splurge with the Christmas spirit just around the corner.

The excitement that comes with holiday parties and reunions, at some point, affects how people spend, especially that it's also the time when employees receive their Christmas bonus and 13th month pay.

But wait. Think and plan before spending for Christmas shopping to avoid overspending.

Chartered financial analyst April Lynn Lee-Tan shared tips on how to be wiser when spending this holiday season.

"Create a budget for presents and stick to it," said Tan, who is also head of research at COL Financial, a stock brokerage firm.

Before engaging into holiday spending, consumers are advised to budget their money first and choose the gifts within their spending capability financially.  

With a budget plan, people may tend to overspend and just pick up things they want when they go to the shopping centers.

People also have the tendency to spend all their bonuses without thinking of setting aside a portion of them for future savings.

Tan advised consumers to pay cash when shopping this holiday season "to make it less difficult to go over the budget."

"And never buy anything on debt," the financial analyst further advised.

It doesn't necessarily require for people to buy all their gifts at the shopping malls.

According to Tan, it could be wiser for them to make homemade gifts.

"Sometimes, homemade gifts will allow you to save more and are even more meaningful like homemade cookies," Tan said.

"I also tell myself that 'it's the thought that counts' so I don't get fixated on buying the most expensive/nicest gifts to people, especially rich friends who have everything," she said.

Earners are reminded that Christmas paychecks can actually be used for future savings instead of spending them all this holiday season.

As financial planners would say: "Think long-term" instead of getting enticed by temporary desires.

The key there is to remain wise in handling and valuing their monetary resources. (FREEMAN)