Publication nr. 17

“Tis the season to be jolly, fa-la-la-la-laa-la-la-la-la…

The holiday season is abuzz. The feeling of joy and happiness surrounds us. I love this time of the year! Well, who doesn’t? the festivities, the food, the music, the Christmas spirit! It is arguably the best time of the year, we have three vacation days pretty much right around this time and most of all, we get the chance to really spend some quality time with our family and loved ones.

For most, it is that special time of the year when we reflect and appreciate the birth of Jesus. But if we are really honest with ourselves, most of us look forward to this time, because we just cannot get enough of … the gifts! Yes, I have said it. Most of us just love the gift giving and the gift receiving and the shopping. Oh wow, December is that time of the year when we blow up our credit cards and splurge a little, just because it is Christmas. And to be honest, why not? We have gone through the entire year working our 9 to 5 and getting things done. What is so wrong with treating ourselves, family and friends to some well-deserved gifts? The song, however, says “Tis the season to be jolly… not folly! So, as we enjoy the season, here are some tips, not necessarily purely investment tips, to keep in mind throughout the Christmas season:

1. Create a budget for the gifts that you wish to purchase and stick to it! It is very important that you do not go overboard with the purchases that you need to make. In order not to get carried away with the purchases, make a list of the people who you need to buy gifts for and determine a budget to guide how much you are to spend. Your budget should be within your means and once the budget is created, please try your utmost best not to deviate from it;

2. Give the gift that keeps on giving! When thinking of buying the perfect Christmas gift, we hardly think of giving some form of financial gift. To be honest, however, a financial gift is one of the best forms of gift that you could give to your loved ones, whether it is a spouse, your child, grandchild or close friend. A financial gift, for example, shares in a company, or units of a cryptocurrency like Bitcoin or Ethereum or even a top-up to an investment account is something that would last the recipient long after the Christmas season has passed. During the season, do not limit yourself to the usual toys and gadgets but mix it up a bit and see how best you can give a gift of/with wealth creating opportunities to your loved ones!

3. Still make your monthly bill payments in December. Under no circumstances should you opt to buy gifts instead of making your monthly bill payments. I know, a discussion about bill payment is never a sexy topic, but choosing not to pay or postponing your monthly obligations until January would be by far one of the most unwise things for you to do, to close 2018! No matter what the circumstances, never choose to ignore your payments, especially your credit card bill, with the intention instead to get a great gift. If you are having difficulty with paying the bill and buying a gift, then try and be creative and see how best you can make a gift instead for that special someone. I am sure they will appreciate the gift you make rather than the gift you buy, because of the effort and heart that is put into it;

4. Shopping around is always a great idea! There are always bargains to be had when looking for gifts. There is no shame in visiting different locations to determine where offers the best prices on the gift. Be smart about your spending during this time of the year;

5. Do not take out a loan to buy a Christmas gift. It is never a good idea to take out a loan in order to finance the purchasing of gifts during the Christmas season, especially if you are not able to afford the monthly payments that you will be left to pay back, long after the Christmas season has passed.

I hope the season brings for you and your family all the joy and happiness that you deserve. Have a very blessed holiday season and a wealth generating New Year! The Investors’ Corner team will see you in 2019 for more engaging and interesting investments articles.

This editorial is presented to you by the DCSX with the collaboration of Vertex Investments.

Author of this publication: Stephanie Shaw CFA, MBA.

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