Refresh Your Finances This Holiday Season: 4 Key Steps

The holidays are a whirlwind of joy, celebration, and togetherness. Yet for many, they’re also a time of financial strain. From hosting Thanksgiving feasts to seasonal shopping sprees, the festive season can take a toll on your wallet, especially if you’re on a fixed income or navigating debt.

The good news? You can embrace the holiday spirit while staying financially secure. Here are four actionable steps to get your financial house in order this holiday season and beyond.

1. Rein in Holiday Spending

The holiday season often tempts us to overspend. Whether it’s extravagant gifts, travel, or festive events, expenses can quickly pile up. Setting boundaries is key to staying financially healthy.

• Set a Spending Limit: Before making purchases, decide on a realistic budget for gifts, travel, and entertainment. Stick to it, no matter how tempting seasonal sales might be.
• Avoid Dipping into Retirement Savings: While it might be tempting to pull from retirement accounts, remember that these withdrawals come with tax implications and reduce future income.
• Use a Spending Cap: Personal finance experts recommend setting a spending ceiling and holding yourself accountable. This can prevent impulse buying while helping you prioritize your long-term financial goals.

2. Conduct a Year-End Financial Review

The end of the year is the perfect time to reflect on your financial progress and make adjustments for the future.

Schedule time with a financial advisor to address critical questions like:

• Are you on track to meet your retirement goals?
• What income will you need in the next year, and how can you achieve it?
• How is your investment portfolio performing, and are there opportunities to reduce fees or risks?
• Are there tax strategies you can implement to reduce liabilities this year and in the future?
• What adjustments can you make to tackle debt more effectively?

A financial checkup ensures you’re equipped to face future challenges, from rising healthcare costs to inflation, while keeping your retirement plans intact.

3. Align with Your Partner on Financial Goals

Money can be a sensitive topic, especially for couples. Differing spending habits or future visions can lead to misunderstandings if left unaddressed. The holidays offer an ideal opportunity to connect with your partner about your shared financial future.

Consider discussing:

• Your collective spending habits and how they align with your goals.
• Whether you’ll stay in your current home, downsize, or move to a new location in retirement.
• Financial priorities like supporting children, paying for education, or helping aging parents.
• Plans for maintaining your health and funding potential long-term care needs.

By having these conversations, you can identify areas of agreement and start building a unified plan for the future.

4. Take Action Without Delay

Having a plan is crucial, but following through is what drives success. Unfortunately, many people procrastinate when it comes to taking meaningful steps toward financial wellness.

Here’s why immediate action matters:

• Only 11% of Americans have a written financial plan, according to the Employee Benefit Research Institute.
• Baby Boomers carry significantly more debt today compared to past decades, with those aged 56-61 seeing a 385% increase in debt loads since 1998.
• Nearly 60% of Americans lack emergency savings, per BankRate, while 1 in 5 has no retirement savings at all.

Procrastination can compound financial challenges, so start taking steps today. Whether it’s crafting a budget, paying down debt, or maximizing your retirement savings, every small action moves you closer to financial security.

The Gift of Financial Wellness

The holiday season is a time for giving—and one of the best gifts you can give yourself is financial peace of mind. Taking the time to address spending habits, review your financial plan, and align with loved ones on future goals sets the stage for a brighter, more secure year ahead.

For personalized guidance, consider consulting a financial professional who can help you craft a strategy tailored to your needs. At SafeMoney.com, experienced advisors are ready to help you take control of your financial future.

Looking for Guidance?

If you’re seeking personalized advice, consider reaching out to a financial professional.. Get started by visiting our “Find a Financial Professional” section, where you can connect with someone directly. If you would like a personal referral for a first appointment, please call us at 877.476.9723 or contact us here to schedule an appointment with an independent trusted and licensed financial professional.

🧑‍💼Authored by Brent Meyer, founder and president of SafeMoney.com, with over 20 years of experience in retirement planning and annuities.