Give yourself a financial planning Christmas present this year

As the holiday season approaches, it’s natural to focus on giving to others.

This December, why not give yourself a gift that will keep on giving? I’m going to let you choose what gift you give yourself and even suggest you pick more than one. By giving yourself one or more of these gifts this month, you can set yourself up for a more prosperous and stress-free 2025.

Here are five financial presents you can give yourself this holiday season to ensure a brighter financial future:

1. A budget that works for you—The best gift you can give yourself is a clear picture of your finances. Sit down and create a budget that reflects your income, expenses, and savings goals. If you already have a budget, take time to review and update it. The holidays can bring extra spending, so plan for gifts, travel, and festivities without compromising your financial stability.

How to make It happen:

• Use budgeting tools or apps to track your spending in real-time. There are many free ones available.

• Prioritize needs over wants and be mindful of holiday overspending.

• Set aside a “fun fund” for guilt-free spending during the holidays.

2. A debt-reduction plan—Carrying high-interest debt into the new year can be a significant financial burden. This December, give yourself the gift of a debt-reduction plan. Focus on paying down credit card balances, personal loans, or other high-interest debt.

How to make It happen:

• List all your debts, including interest rates and minimum payments.

• Tackle the high-interest debts first by making minimum payments only on all debts except the one with the highest rate and put everything extra on that one first until it’s gone.

• Look into consolidating high-interest debts into a lower-interest loan or line of credit to save on interest costs.

3. An emergency fund—An emergency fund is your financial safety net. If you don’t have one yet, now is the time to start. Having three to six months of living expenses saved can provide peace of mind and protect you from unexpected financial shocks.

How to make It happen:

• Start small by saving a percentage of your December income.

• Automate your savings to make it a consistent habit.

• Consider reallocating holiday bonuses or year-end tax refunds to your emergency fund.

4. Invest in your future—The holiday season is also a great time to focus on your long-term financial health. Contributing to a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) can help you grow your wealth and reduce your tax burden.

How to make It happen:

• Maximize your RRSP contributions to take advantage of tax deductions.

• Use your TFSA for investments that will grow tax-free over time.

• If you have children, contribute to a Registered Education Savings Plan (RESP) to benefit from government grants.

5. Financial literacy and advice—Understanding your finances is one of the most empowering gifts you can give yourself. This December, invest in your financial education or seek advice from a professional financial planner.

How to make It happen:

• Read books, attend webinars, or take online courses on personal finance.

• Schedule a meeting with a Certified Financial Planner professional to review your goals and develop a personalized plan.

• Join online communities or forums focused on financial literacy for support and ideas but be wary of the source and of bad advice.

The holidays are a season of giving, and that includes giving to yourself. By focusing on these financial gifts, you can set the stage for a prosperous 2025.

This holiday season, unwrap the gift of financial security and peace of mind. It’s the kind of present that never goes out of style.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.