Let’s start a new pre-holiday tradition

Filipinos love the holidays. The festive spirit begins as soon as the ber months arrive. This signals the time of many celebrations and reunions. Recent study says 76% of Filipinos plan to shop during the holiday sales. But what are the reasons why? The same study says 71% want to shop because of the holiday sales, 62% do so because they have more money, and 58% say they enjoy shopping because of the holiday atmosphere.

Now, let’s take a broader view of our spending habits last year. As our income flows from January to December, bonuses included, our savings build up—and so does our spending, which usually peaks towards the end of the year as per PSA data, and then the holiday financial hangover happens come January.

The AHA moment here is finding the sweet spot in third quarter making August the prime time for doing financial resolutions before the holiday spending surge. Unlike January, when you are still recovering from the holiday spending and New Year’s resolutions have an 88% to 92% failure rate, August provides a crucial window to budget and plan early and effectively. This sets you up for a smoother holiday season and a stable start to the new year.

So, let’s take a proactive approach. Think of August as the Wednesday before a busy weekend—it’s the calm before the holiday storm. This is the perfect time to make your pre-holiday financial resolutions that are realistic and actionable. Let’s start this new tradition of doing our financial resolutions in August.

To help you plan, begin by doing these four financial habits. To help you remember, think of the Gift of Financial Knowledge. Think of G-I-F-T:

Get ahead with your holiday goals. Starting the holiday season early means you have a 5-month window to strategically plan your finances before year ends. Set or revisit your short-term goals like saving up for a holiday travel and supporting a charity. Create your long-term goals like building your emergency funds, saving for your retirement, and setting aside money for milestone purchases like a car, a home, or even an education.

Invest your bonus wisely. Let us talk about the Christmas bonus. As you receive extra funds during the holidays, commit to reserving a portion for investments that grow in value. Invest it in stocks, mutual funds, or starting a small business. Making meaningful investments can help grow your money instead of spending it all now.

Follow a budget plan. It’s impossible to spend a little extra to treat yourself and your loved ones during the season of giving. But it is important that when you do, you follow a budget plan. Discipline in tracking your income and essential and non-essential expenses is key. Use budgeting apps to stay on track.

Take advantage of opportunities to save. The holiday season will bring tempting offers. It's important to stay focused on your priorities. Big goals like upgrading that old family car to a new one or buying a bigger home for a growing family are significant milestones you need to save up for. Maximize opportunities to save for these big goals.

With this G-I-F-T, we hope that you’ll embark on a cycle of empowerment and growth where you apply your knowledge and achieve your financial goals.

To continue your financial journey, go to earnest.metrobank.com.ph.