By Clode Moradi, MSPFP, CFP®
With the holiday’s comes overspending and an underlying stress to keep everyone happy. Here are a few simple tips to help you save during the holidays
- Create an overall budget and stick with it.
- The ideal thing to do is to have done this earlier in the year, so you would have saved that amount already as dedicated funds for the holidays.
- Don’t compare your gifts or try to outdo others.
- This is not a competition. Gifts don’t have to be expensive, they have more meaning if they are genuine. For my 40th Birthday I received a lot of gifts. My favorite gift was a simple green T-Shirt that was associated with my favorite hobby. Not only have I worn this shirt 100 times (I made sure to wash it between usage), but I really appreciated it because the person who bought it for me had to take a moment and think about what I would make use of. It’s a $20 t-shirt that I use every week with a smile on my face.
- Be mindful of advertising tactics.
- There are numerous holiday sales, but most people end up buying things that they otherwise wouldn’t. A good example is “buy one, get one free”. Most people end up buying something they otherwise wouldn’t, because you can get two for the price of one. However, without the sale, you would have not spent that money to begin with.
- Focus on making memories and not buying expense gifts that are temporary.
- Decide to take it easy on expensive gifts and instead plan your family vacation for next summer. We are doing this with our kids this year. The plan is to not spend unnecessarily this season, so that we can instead plan our summer vacation. Remember, kids outgrow most toys very quickly, but memories last and become a part of who they become as adults.
- Don’t buy stuff with credit cards.
- If you’re adding to your debt each holiday season, it might be time to sit down and take a look at your finances. The extra costs associated with the holidays should be planned for in advance.
Use the money you save to make contributions and invest in qualified accounts to grow your money and get an immediate tax deduction for 2018. You can sometimes even use these accounts to fund a college education.
Start your tax planning now. The potential money your leaving on the table could pay for the expenses associated with the holidays. Touch base with a CFP® Professional now, to see if you need to do anything to position yourself for tax and other savings.
I get a lot of questions regarding what affects your credit and what to do if it is negatively impacted. Here is a great article on Money.com on
Clode Moradi, MSPFP, CFP®
Clode is an independent Certified Financial Planner™ and has a Post-CFP® Masters Degree in Advanced Personal Financial Planning, from Kansas State University, one of the most prominent financial planning universities in the nation. He graduated at the top of his class with a 4.0 GPA and was awarded a nomination and acceptance into the honorary society of Phi Kappa Phi to represent the importance of higher education in the Financial Planning industry.
Clode specializes in taxation, retirement, and investment planning as they relate to personal goals and quality of life. He also holds a Graduate Level Certification in Financial Therapy, and has written extensive research articles on financial topics such as goal based portfolio construction, how to define “financial success”, money psychology and its manifested human behaviors, and various other topics related to finance, taxation, and human behavior as they relate to one’s quality of life. Clode also has a Bachelor’s Degree in Personal Financial Planning, where he graduated Summa Cum Laude from Franklin University of Ohio. He is an active member of the Financial Planning Association and Financial Therapy Association.
Clode is the founder of Brilliant Financial Strategies, LLC. He started in the financial industry more than 20 years ago and created BFS as a platform to offer financial planning at a much deeper level. Clode feels that Financial Planning needs to break out and surpass the status quo. “Our job is to help clients make use of their financial potential to build a meaningful life”.
He enjoys spending quality time with his wonderful family. Clode’s hobbies include saltwater fishing and Brazilian Jiu-Jitsu. Clode is the creator of a group called Kool Kids Fish that introduces kids and their parents to the hobby of fishing, as a means of spending quality time together. Clode also coaches a kids Jiu-Jitsu Competition class at Gracie Barra La Canada-Flintridge, where he works with kids and teens that compete in Jiu-Jitsu tournaments nationally. One of his most valued personal accomplishments is receiving his brown belt in Brazilian Jiu-Jitsu from ADCC world champion Orlando Sanchez of Gracie Barra.
Clode’s approach to life, money, and financial planning is to create quality of life through balance and honest self-reflection. He believes that abundance can only have value when there is balance in one’s household, family, and internal being. He brings this approach to all aspects of life.
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