This Holiday The Best Gift You Can Give Yourself Is Financial Well Being

This is the time of year we want to buy gifts for everyone on our list: our children, nieces, nephews, parents, siblings, friends, the mailman, and our boss.  Ask yourself at what point does it stop?  Every year we shell out more money than what is necessary in order to compete with the previous year and many of us go into debt over the foolishness.  To me we confuse giving with true generosity.  We want our loved ones to be happy, but if our finances are strained where is the love and happiness in that?

Here are a few guidelines you can follow when buying a gift for someone whether it’s Christmas, Hanukkah, Kwanzaa or a birthday;

Know what you can afford – under no circumstances should you buy gifts you cannot pay off immediately.  This means no credit card balances rolling into January.  I am sure with all the upcoming holiday sales this will be hard, sit down and think about it; what can you comfortably spend and be vigilant about it.

Protect your reserve – ensuring your emergency fund and investments are intact is important to your long term financial stability. Think about it, as your money grows this will allow you to be even more generous in the years to come.

Secure your estate – If you intend to leave your family an inheritance; a will is helpful, however consider a revocable living trust which ensures the smoothest transition of your assets to your heirs. (Look into the Federal Estate Tax rules - while it disappeared in 2010 it is scheduled to return in 2011).

Let’s go into 2011 with a new way to love our selves and the people we care about.  Because, honey, I am here to tell you when you begin to see all the money you have stashed, and that your family loves you just the same, not only will you have peace of mind but your wallet will thank you, too.

~Eslyn