The upcoming holiday season may promote excessive spending. The best way to cope with a materialistic time of year is not to fall prey to pressure from the retail world. At the end of the day, as long as there is Christmas, there will be gift-giving. How much money should you plan to set aside for this season? Many financial planners recommend spending no more than 1.5% of your annual income on holiday spending. For example, if your annual household income is $50,000 you should spend $750 or less on holiday gifts, travel, and entertainment. After you set a budget, aim to pay cash for your purchases, buy local, find sales, and avoid applying for department store credit cards that can put you further into debt. Remember what’s most important. The holidays are a time for making memories and spending time with family. Give yourself a break and remember the true meaning of the holidays!

Ray Mihalicz, www.raylobookkeeping.ca