How to Spend in December Without Worrying About January
Every December, I see the same pattern. Smart, thoughtful retirees enjoy the holidays, and then, almost on cue, January shows up with a quiet sense of unease.
A few days after Christmas last year, a client called me. She didn’t sound stressed, just slightly unsettled. “I think we spent too much,” she said. “Nothing wild, but it feels like it added up fast.”
We pulled up her accounts together - travel to see family, extra meals out, gifts for grandkids, and one generous check that felt impulsive in hindsight. When we zoomed out and looked at the full year, the numbers told a very different story. December was higher, but the plan was doing exactly what it was built to do. That is December in retirement. The spending is usually not irresponsible; it is compressed.
Though 2025 has been a challenging year for many, most retirees have a steady rhythm the rest of the year with predictable withdrawals and familiar expenses. December ignores that retirement spending plan entirely. Travel, hosting, generosity, and those “one-time” costs that somehow happen every year all land at once. On paper, it looks loud, even when it is perfectly reasonable.
What causes the worry is not the spending itself. It is the lack of context. Clients enjoy December, then mentally replay it in January with a critical eye - guilt creeps in, confidence softens. Suddenly, there is talk of pulling back, even though nothing actually went off track.
When I discuss December spending with clients, the focus is not on restraint. It is an intention. December is not a normal month, and it should not be treated like one. If spending is higher, that is not a failure. It is a feature of year-end spending. The key is recognizing it ahead of time and using the right resources for it.
Money spent on experiences and connections tends to age well. Money spent out of obligation does not. Part of good planning is giving yourself permission to enjoy the former without second-guessing it later. That is why cash and savings accounts exist in the first place. December is exactly when they are supposed to be used.
By the time January arrives, the work is usually just perspective. We look at the plan, not the emotions. And almost every time, the numbers are calm even if the feelings were not. The discomfort came from expecting December to behave like an ordinary month, not from anything going wrong.
The point of financial planning is not to make December smaller. It is to make it intentional - so you can enjoy it fully and step into January confident, not cautious. December was always part of the plan.
Happy Holidays and Happy New Year!
About Angela
Angela Dorsey is the founder and financial advisor at Dorsey Wealth Management, a fee-only financial planning firm based in Torrance, California, helping women prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management, and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a CERTIFIED FINANCIAL PLANNER™ professional and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion for empowering women to make the best financial decisions possible. Angela lives in Torrance, California, with her husband. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.