Holiday Planning
‘Tis the season… to go in debt? This is the question that I thought of when I read this article. The article speaks to usage of credit cards, buy-now-pay-later (BNPL), and spending beyond one's means. This conjures all kinds of scenarios, from “Keeping up with the Benjamin’s” to family arguments about the true meaning of Christmas. All of these judgments and sweeping condemnations are not our “cup o’ tea” at Bedrock. We want to look at this from a place of openness and curiosity, empowering each individual to decide for themselves what is important during this time. Here are some considerations we think might be useful for this holiday season.
Clarity
We like starting our process by developing clarity with our clients. What matters during this time? What goals would you like to achieve? Are there extenuating circumstances that might prevent this from happening? In asking these questions, we can come to terms with what this time period is going to entail. Considerations, such as throwing parties (and the cost of that), gifts for loved ones, decorating the house or living spaces, and travel plans (see some suggestions here), are all part of this decision process. Rather than telling someone they can’t afford it or they are stupid for racking up debt, we like to look at things from a slightly different angle.
In our experience, the best parts of working with our clients is that they each have a desire to be useful and loving of others. The question we usually land on is what would the other person like to receive. Using the love languages, is it the gift of quality time or an act of service or a gift of a gift? In considering the receiver of my love, I can become clear about what actions I need to take to show this love to them. Framing our decisions in this way, with this level of clarity, will help us plan out other aspects of this process.
Budget
This is both the fun and teeth-pulling part of this process. It can be exciting making a list (and checking it twice!) of all the people and things to be done for them. It is exciting throwing parties for family and friends, or travelling to be with them in their homes for the holidays. Getting a tree, decorating with lights and baking cookies are all traditions people hold dear in their hearts. This is the fun and wonderful part of the budget. The not so fun part is the numbers that come associated with them. This can feel overwhelming and condemning when totaled up. Maybe there is another way. We acknowledge budgets for what they are: numbers and guidelines. We find a healthy budget is flexible, all-inclusive, and honest. These traits allow us to “splurge” and live within our means. It allows us to be true to ourselves and true to others in our decisions. It allows us to enjoy the party and gifts without stressing about how we are going to come up with the money to pay for it. We can relax and breathe.
Credit
Credit is a wonderful tool that was developed for people to meet shortfalls in their lives. Maybe someone needs a little credit until a holiday bonus comes in, or until their raise kicks in in 2022, or to make it to their next paycheck after buying gifts on sale. The reasons are many for utilizing credit, not just during the holiday season. However, as with our clients, we find that this is often the solution to all of the problems. Time to buy presents, put it on the card. Throwing a party, put it on the card. New technology just came out, put it on the card. This level of reactionary and impulsive spending has less to do with credit and more to do with a lack of planning and intention. As reflected in conventional financial wisdom, it is not that financially stable people do not use credit or carry debt. They do. It is that they are planners. They plan their purchases and, with clear eyes, know the situation they are signing up for.
Conclusion
This time of the year is meant to be loving, joyful and hopeful. We at Bedrock Financial Health want you to have the best holiday with your loved ones. With some simple intention setting and basic action, we know that you will have a wonderful time creating the most fulfilling experience possible. We are here to help you along the way as you see fit.
