This time of year, it can be easy to get carried away with spending, and not just spending on holiday gifts. Holiday happy hours and dinners out, vacation travel, special holiday outfits, and, of course, gift giving can all be very expensive. While no one wants to be a Scrooge, it’s important to really understand how much you can afford to spend or you will be paying for your budget-less, mindless spending, for the next year (or more!) in the form of credit card interest or budget shortfalls in other areas of your finances. Hint: If holiday spending means skipping your car payment, you really can’t afford it!
The first step in avoiding overspending is to know how much you have after paying the non-negotiables such as living expenses, retirement savings, and an emergency fund. Fortunately, EWTF members have well-funded, secure retirement savings through our Pension Plan and Individual Account Plan but putting money away in your own private retirement plan is never a bad idea so consider this when you are taking a close look at your financial health.
Fidelity, our Individual Account Plan manager, has countless resources and information available to all of our EWTF participants, to help our members feel educated on and in control of their hard-earned money. Visit Fidelity to see a few short videos that can help you better understand your finances and, importantly, understand what you can afford. Before you shop ‘til you drop this coming holiday season, make sure your bills won’t still be giving into the new year!