          Ŀ
       Ĵ 'Twas The Month Before New Year 
          

       Television and radio commercials are enticing you to buy,
       buy, buy. Every time you go to the front door, there are
       more flyers, with colourful ads. You're looking forward to
       that excited look on the faces of your loved ones as they
       open their gifts. You've got parties, shopping, and
       celebrating on your mind.

       Is this any time to be thinking about financial planning?

       This is a *fine* time to be thinking about financial
       planning! Here are some tips for getting through the
       Holiday Season without a financial hangover.

       Before you get caught up in the spirit of the season, set a
       realistic budget for the coming weeks. You may do this on
       your own, or you may engage the entire family in the
       project. As well as your usual expenses, you can expect
       additional costs at this time of year for such things as
       gifts, entertainment (both for going out and for having
       guests in for a meal or a glass of cheer), clothing for
       holiday events, and, possibly, travel. Set reasonable
       limits for these items, and stick to the limits you've set!

       If you tend to overspend, try using cash, rather than
       credit cards, when you are shopping. Cash has a built-in
       way of telling you when you are reaching its limit. If you
       do use credit cards, keep detailed records of how much you
       have charged so that you are not surprised by big balances
       on your January statement. Chances are good that you won't
       receive extra money in January to help you deal with these
       costs! Putting the brakes on spending in December will help
       to avoid those really tight months in January and February
       when you must pay off a huge credit card bill or face
       extremely high interest rates.

       There are lots of ways to trim costs without losing the fun
       of this time of year. Many families have found ways to
       minimize the commercial aspect of the season while
       preserving or reintroducing the traditions they remember
       from their own childhoods.

       Some families choose modest presents for adults and
       concentrate on bigger expenditures for children. Others
       pick names from a hat and buy a substantial present for one
       person, rather than gifts for everyone in the family. If
       you're the one who is travelling to be with family this
       year, consider yourself to be the gift!

       Children often get caught up in the frenzy of advertising
       and request long lists of expensive gifts. To curb this
       tendency, one mother we know limits her children's TV
       viewing in November and December, and removes the flyer
       inserts from the newspapers before they enter the house.
       Others set children an affordable dollar-value limit, and
       encourage each child to research and select a variety of
       gifts s/he would enjoy in that price range. This gives
       children some practice in making informed choices, and adds
       to their financial education.

       If cash is tight, think about giving a gift of your skills
       or time. A family with young children would be happy to
       receive the gift of several hours of free babysitting, to
       be redeemed throughout the coming year. A gardener would
       love some help with the heavy work of digging or
       transplanting during the growing season. Elderly friends
       and relatives would enjoy transportation for shopping
       trips or other outings, or help with the yard and
       housework. Families with older children can often use an
       extra chauffer to get all the kids to all their activities.
       Caregivers could use some time off. Almost everyone can
       use an extra pair of hands in some aspect of their lives.
       be creative!

       If your financial circumstances have changed this year and
       you are unable to manage what you have done in the past, be
       honest with yourself and other family members before you do
       your shopping. You will save yourself unnecessary stress.
       If there is someone in your family who is experiencing
       financial difficulties, be sensitive to the situation when
       you are arranging activities or planning gifts.

       When  you are entertaining, remember that most people are
       happy with simple fare. For many guests, it is the visit,
       rather than the largesse of the host, they will remember.
       Large family gatherings can become potluck affairs, with
       everyone contributing a special dish. This spreads the work
       and expertise, and allows everyone to enjoy the results.

       If your adult children, siblings, or aging parents are
       staying with you for the holidays, it is a good time to
       discuss serious matters as the festivities wind down. While
       you have extended time together, talk about your hopes and
       plans and fears, about what is really important in your
       lives, and about what actions you would like taken if you
       can't make decisions yourself. This kind of information
       will help you form a strong base for developing your will,
       planning your estate, setting up powers of attorney, and
       examining what you want your financial resources to
       achieve.

       As the year draws to an end, it is traditional to take
       stock and to make plans for the year ahead. Review your
       financial goals, and see what progress you have made over
       the last twelve months. Figure out where your money went
       last year, and make some decisions about where you intend
       to direct it for the coming year. Set some goals to reach
       in the New Year.

       If you haven't already done so, get a good handle on where
       your money is going. A manual system will work for some.
       For those with a computer-bent, January 1 would be a great
       time to start using personal finance software (such as
       Quicken) to set your budget and to track your money. When
       your next annual review comes around, you will be able to
       pinpoint exactly how your money is handled.

       Most of all, this time of year serves as a reminder of why
       we are doing financial planning . . . to arrange our
       financial resources to achieve the things that really
       matter to us and to our families.

       Happy holidays to all, and best wishes for a prosperous New
       Year.

