Year End Planning With The Happy Hour Ladies
Today is the last Friday of the month and my regular listeners know that on the last Friday of the month, I host the happy hour on the podcast where I gather great friends with me to drink cheap drinks and talk about money topics. Since we are in the second to last month of the year, today, we’re talking about holiday and year end planning. I think this year more than ever it makes sense to take the time to plan and we share more about that in the show. There is plenty to do before we enter a new year and now is the time to do it.
What are we drinking?
Melanie Lockert The Mental Health and Wealth Show: - Hot Cocoa
Joy Liu Head of Trainer Academy - Ice Water
Shannon McLay - Rose
Podcast Notes
With one month left of 2022, it is the time for holiday and year-end planning!
Yahoo Finance released an article, Santa has a Budget and mentioned an episode of MYAM. This is something Shannon started with Will a few years ago. Everyone has a holiday budget, so why wouldn’t Santa?
The last few years have been a struggle financially, and it looks like this will continue into the foreseeable future. This year especially, people are feeling the impact of inflation and haven’t started holiday shopping yet. Creating a holiday budget is essential. With layoffs happening, it looks like a recession is coming next year. It’s vital to be realistic and plan.
If companies are planning layoffs, they will likely wait until the New Year. There’s a stigma about laying people off around the holidays, and with what we’ve seen from tech companies, it’s likely that more layoffs are around the corner. It can take weeks for unemployment checks and time to find another job. It’s important to be prepared and have an emergency fund. The more cash you have on hand, the better.
Advice for holidays on a budget:
Be open with your family and friends. Tell them you’re worried about the recession and are focusing on other financial goals this year. These conversations might not go over well in all families, but you never know; you may be the first to openly say what many others in the group are feeling.
Setting boundaries can be tough, but it’s important. If there’s any year to say, ‘it’s not in the budget,’ it’s this one.
Gift planning can go a long way. Create a list of everyone who needs gifts and how much you’d like to spend on each person. Come up with these ideas early so you can keep an eye out for sales or secondhand options.
If young children are in the family, talk to the other adults about only focusing on the kids this year.
White Elephant and Secret Santa are fun options if adults want to exchange gifts, or if there aren’t kids involved. This way, everyone purchases one gift rather than being responsible for a bunch.
Many people don’t have room for excess stuff. Consider contributing to their kid’s college fund or going in for one larger gift with a group of people.
Get kids involved in the conversation, and talk to them about what things cost and Santa’s budget.
There’s a good rule for helping kids choose gifts, ‘something you want, something you need, something to wear, and something to read.’ You can create frugal financial habits with your kids while staying positive. You don’t want to scare your kids. The conversations should be positive and productive and all about the choices you’re making as a family. Coming from a place of fear, shame, and scarcity can be traumatizing.
End of Year Finance & Tax Planning:
Check the FSA and see if there's any money to spend before the deadline.
For self-employed people, are there any purchases you need to make that can happen this year?
Can you contribute to your IRA?
Review your stock portfolios. If there are losses in your account, these can affect your taxes. Chat with your tax professional.
Review your budget. Can any subscriptions be cut? Are there any opportunities to get more frugal? Now is the time to prepare for next year.
Final Thoughts:
Recessions are normal, and we haven’t had one in a while. We are likely going into recession this next year, so try to head into 2023 with cash in the bank, not debt from the holidays. 2022 is the year to set boundaries and not feel shame or judgment about it.
Prepare for the worst, but hope for the best. How can you put yourself in the best position while enjoying the season? Rethink traditions and get creative.
The most important part of the holidays is the people you love and honoring those relationships. Money is tight for everyone right now. Take the opportunity to get creative this year.
Next month, The Happy Hour crew returns for the annual goal recap. It will also be Kassandra’s last show after two years.
Takeaway: My biggest takeaway is the importance of planning. It’s hard to think about worst case scenarios, especially when you want to experience the joys of the holidays, but I truly believe that you can accomplish both and you’ll be thankful in the long run that you did.
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook group, and let me know what you want to hear.
We are fast approaching the end of another year and we need to start preparing for a new year. If you or someone you know would like to have a supportive best financial friend along the ride with you for this journey, please check out financialgym.com. With memberships starting as low as $35 a month, we are the inflation-proof source for financial wellness for anyone. So head over or send friends to financialgym.com and schedule a warm up call today. As a reminder, our warm up call team is staffed with amazing and current Financial Gym clients that can answer any of your questions about our program.