The holiday season and year-end is upon us. It is a time for giving, party going and tax planning. There are many considerations to avoid a financial hangover and missed opportunities as you enter into 2005. Here are a few timely tips to help you get through the holidays and still have a few bucks left over for yourself.

Plan your gift budget carefully. Set a dollar amount and stick to it. Try to avoid the “Bigger and Better” syndrome, and rethink the “I Have to Get Them Something” idea. These two thoughts often lead to spending more than you can afford. No one will think less of you based on the dollar value of your gifts. Love does not come with a price tag. If the gift doesn’t fit your budget, scale down and be realistic. Homemade gifts are often greatly appreciated and can be more meaningful than those bought from stores.

Avoid borrowing money to make your gift purchases. Lenders may be tempting you with “Stocking Stuffer”, or “Low Interest Rate” loans at this time of year. If you can’t afford the gift, don’t borrow what you don’t have. If you plan to use your credit card, make sure you have the cash available and pay it off within the month. You will avoid the high interest charged and free up your credit card balance. A good principle to follow at any time of the year is to avoid borrowing money for things that you cannot afford.

Let’s not forget about those in need. The holiday season is also a good time for charitable giving. Some families have taken the step of not buying for the adult members of the family and have decided to give that money to charity instead. If you can afford a little extra, your donations to charities will have a benefit for you as well. You may be eligible to receive a cash gift, in the form of a tax refund, when you complete your income tax return.

Finally, you may have investment accounts that are not registered and have sustained losses since you made your initial purchase. You may want to trigger the loss by selling your investment. You can then use the capital loss to offset any gains that you may have this year, or in any future year.

Try not to let the stress and pressure of the festive season get you down and hamper your personal finances. With a little thought and planning you can relax and enjoy yourself this holiday season.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.