With the year coming to an end, a lot of us are feeling fatigued and cannot wait for the holidays. We want to kick off our shoes, relax and spend time with our loved ones. I am, however, reminded of what Warren Buffett said: “Someone is sitting under the shade because someone planted a tree a long time ago.”But instead of waiting for the new year to get your finances in order, the best time to start planning is now.
The best way to avoid overspending is to create a budget now, specifically for the holiday season. Allocate a fixed amount for all the entertainment, eating out and gifts. If you can, transfer the funds into a different account from your normal day-to-day account, do so. Or, if you want to take it a step further, you can use the envelope method to budget for holiday expenditure. Using the envelope method, you will draw cash for your entertainment budget and put the money in an envelope.
A will is a document in which you state how your assets should be distributed once you die. Not only that, if you are a parent to minor children, a will gives you the opportunity to appoint a guardian for your kids, someone you trust and know will do a decent job at raising them.