Christmas… and some timeless financial wisdom


Christmas week is upon us and the whole population is gearing up for one of the biggest spending sprees of the year. Many retailers and small businesses see this as the time when they make a sizeable amount of their total return for the year. Now, while we spend, spend, spend it would be good to take some time to reflect on some timeless financial wisdom from past ages, reminding us of the importance of far-sightedness, gratitude, and careful festive spending but with a twist!


1. A Penny Saved Is A Present Earned

Benjamin Franklin’s timeless wisdom still stands to this day and especially during the festive season it takes on a special quality. In the spirit of gift-giving, consider how saving a penny today can transform into a present for your future self. (Start a savings plan for your children’s education or start your pension)


2. Don’t Put All Your Stockings On The One Fireplace

Diversification, a principle trumped by investment gurus across the financial world, finds a festive twist in this saying. No child wants all theirs presents in one stocking, so wise investors understand the value of spreading their assets across different investments to bring risk under control. (Time to review how your pension/investments are being invested).


3. It’s The Thoughtful Spending That Counts

Amidst the hustle and bustle of holiday shopping, ask, why am I giving these gifts? John D. Rockefeller’s advice on thoughtful spending encourages us to focus on the value of the actual giving rather than the money being spent. So often the nicest gift come from the heart, not the wallet.


4. Compound Interest Grows Like a Snowball

The magic of compound interest is like a snowball rolling down a hill. The original saying, attributed to Albert Einstein, reminds us of the exponential growth that comes from consistently saving, investing, and re-investing. This Christmas, plan to let your financial snowball gather momentum for a prosperous future. (Review your shares portfolio and see are there any shares with dividends that should be in your portfolio.


5. Count Your Blessings, Not Just Your Pressies!

The old hymn by Johnson Oatman, Jr. reminds us that it’s easy to lose sight of the true treasure of Christmas and life itself. Let’s be grateful for what we have during this Christmas time. Let’s remember the joy of Christmas is not solely measured in the quantity of presents under the tree.  (Review your spending habits – can we allocate some to our favourite charity)


6. Invest In Memories, They Yield The Highest Returns

Peter Lynch’s investment advice with a Christmas twist, emphasises the lasting value of family experiences over sparkling presents. This Christmas look for things to do as a family and make lasting memories —moments of joy, laughter, and shared experiences that yield dividends of happiness for years to come.


7. Santa’s Workshop Wasn’t Built In A Day

Rome wasn’t built in a day, and neither was Santa’s workshop! Have patience and persist in your financial endeavours. Whether you’re saving for a special holiday, celebration, or a long-term goal, remember that consistency over time yields the greatest results. (In principle, review and rebalance your investments once a year and as with the Christmas decorations put them away and think no more till next year).


8. Give The Gift Of Financial Literacy

As you consider what to buy for your family and friends, consider a book on finance. It will be an encouragement to others with open their eyes to the tools that allow us to make informed decisions about money, nurturing financial well-being and independence in the long term. (Read and re-read as proper balanced knowledge is invaluable to investment success).

Finally, thanks to you all for reading my columns this last year and may this Christmas be a time of joy and happiness to you and your family with 2024 being a prosperous New Year.

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