We are all familiar with the phrase “after the holidays,” one of the most common Israeli excuses for postponing action. The diet, the household tasks, and important financial decisions can all wait until later. When it comes to our money, however, waiting until after the holidays may be too late.
Here are five practical steps that can help you start the new financial year on the right foot.
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Plan for the Entire School Year
For parents, it is often easier to organize the family budget around the school year. This is the time when families register children for extracurricular activities, private lessons, youth groups, and other programs.
Before committing to several activities, calculate the total cost for the entire year. A monthly fee may appear manageable when considered on its own, but several recurring payments can place significant pressure on the household budget. Ask whether you will be able to continue paying for all the activities throughout the year, not only during the first few months.
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Use Holiday Gift Cards Wisely
Have you already used the gift cards you received for the holidays? Many people treat gift cards as money intended for treats or luxuries. In practice, they are an additional financial resource and should be managed accordingly.
Consider using them to purchase items that were already included in your plans, such as household products, clothing, school supplies, or groceries. This can reduce the amount you need to spend from your regular income.
Keep the cards in your wallet, or remember to load them into your digital wallet, so they are available when you need them. It is also a good time to set personal and family financial goals.
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Approach November Sales with a Plan
November is known for major shopping events and promotions that encourage us to buy more. Before making a purchase, ask whether you genuinely need the product and whether the offer is truly worthwhile.
Ignore promotions for products that do not suit your lifestyle or current needs. A discount does not create savings if it leads you to buy something you had not planned to purchase.
When shopping online, make sure the website is secure before entering your credit card details. Check whether shipping costs are included in the advertised price, and review the return and cancellation terms before completing the purchase.
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Buy Clothing Based on Need
Clothing retailers also increase their marketing efforts during this season. Sales can be an opportunity to purchase items you will need during the year, but only after checking what you already own.
Outlet stores and second hand shops may offer useful alternatives at lower prices. Make a list before shopping and focus on items that fill an actual gap. This will help you avoid purchasing clothes simply because the price appears attractive.
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Wait Before Replacing Furniture
The sense of renewal surrounding the new year may create a desire to replace furniture or refresh the home. However, the period leading up to the end of the calendar year may offer better opportunities, as stores often reduce prices before conducting their annual inventory counts.
Furniture is generally purchased for many years, and its condition may not justify replacing it. If a new item was not included in your plans and the existing furniture is still functional, consider postponing the purchase.
Begin the Year with a Clear Goal
At Paamonim, we recommend beginning the year differently, with thoughtful purchasing decisions that preserve your financial ability for the months ahead. Use the spirit of renewal to define personal and family financial goals, plan for upcoming expenses, and make choices that will continue to benefit you long after the holidays are over.