Holiday Budgeting

As we prepare for another merry holiday season in Bermuda, with both prices and festive spirits soaring, it's a period marked by community celebration, and careful planning. In a world where the financial landscape is ever-changing, Bermuda shifts too. Market uncertainty looms, with increased borrowing costs and higher interest rates impacting all areas of life. This year then calls for a more thoughtful approach to personal finances, encouraging us to change our mindset and find innovative ways to manage our resources.


By being thoughtful, we can stretch our budgets further, prioritise heartfelt gestures over extravagant spending, and show our loved ones – and those less fortunate – that we care.

Holiday Budgeting Tips

A mindful approach to spending:

  • Make a List: Budget for everything, including gifts, meals, decorations, or travel, and even small expenses like wrapping paper. This helps manage your spending and avoids surprises.

  • Shop Early, Save More: Start holiday shopping early to snag the best deals and avoid impulsive, last-minute buys. Look for cost-effective options, especially for stocking stuffers.

  • Avoid the Credit Trap: Use debit cards or cash instead of credit to keep your holiday debt-free. True holiday cheer comes from celebrating within our means, not incurring debt.

Financial Goals and Gifts

The holiday season is a great time to reflect on our financial journey:

  • Set Goals: Reflect on your 2023 financial achievements and set goals for the new year. This is crucial for ongoing financial wellness.

  • Gifting that Grows: Opt for meaningful long-term gifts, like savings accounts or shares in a growing business, especially for young ones. These presents, such as investing in the Bermuda Stock Exchange or one of many publicly traded companies, may not dazzle under the tree, but they offer lasting value and can spark a lifelong interest in financial growth and security. Make it fun by giving your little one a good, old-fashioned piggy bank.

  • Year-End Reflection, New Year Strategy: Schedule a January meeting with your Wealth Manager to review your 2023 financial journey. Use this opportunity to assess your successes, learn from past experiences, and plan for the upcoming year. This check-in is key for strategising investments, be it for retirement, education funds, or other savings goals.

  • A Promise of Financial Wellness: Plan before you spend. It's a commitment to yourself, and a promise to continue building a secure and prosperous future. This sense of responsibility and foresight can bring peace of mind, allowing you to enjoy the holiday season with confidence.

A careful and measured approach to spending will set you up for a strong start to 2024.

  • Review and Renew: Take a moment to review your standing orders for bill payments. Ensure they continue seamlessly into the new year, avoiding any end-of-year expirations. This simple check can prevent any unexpected lapses in payments as we move into January.

  • Boost Your Savings: Embrace the spirit of new beginnings by adjusting your standing orders to increase contributions to your savings accounts. Setting up a little extra to go into your savings each month is like giving a gift to your future self. It's a proactive step that cultivates a habit of saving, ensuring that as the new year unfolds, so does your financial resilience and security.

  • Make Your Giving Count: Your contribution can create a meaningful impact in Bermuda’s community by engaging with local charities, such as the Family Centre’s ‘Adopt a Family’ programme, to directly assist a family in need. Your donation could be anything from vouchers, a festive meal, toys, or even a Christmas tree, bringing joy to those less fortunate. Similarly, supporting people out of homelessness through HOME helps build a brighter community and you're becoming part of someone's journey towards a brighter tomorrow.

  • Volunteer Your Time: Amplify the impact of your giving by volunteering. Whether with your local fraternity, sorority or other charitable organisation, connect with and participate in toy drives like the one hosted by Toys for Tots, or food collection efforts with The Eliza DoLittle Society. Volunteering truly connects us with our community and offers an experience that exemplifies the holiday spirit.

Let's use this time to spread kindness and generosity, creating a fulfilling and financially conscious celebration that reflects who we are as community and the true spirit of the season.


DISCLAIMER: The content in this article is for informational purposes only and is not intended to be a substitute for professional medical advice, diagnosis or treatment.