Santa’s Christmas: Can the Big Man Afford It All?

Dear askpaul, 

Happy Christmas to you! You probably know me better as Saint Nick, the big man from the North Pole, leader of a legion of hardworking elves, the fella keeping tabs on who’s been naughty or nice—and yes, just your regular Santa Claus. 

But let me tell you, even Santa’s got his fair share of financial woes. 

The markets have been all over the shop, interest rates are climbing, and don’t get me started on the price of toys—sure, it’s a wonder I’ve managed this long! On top of that, I’ve got elf wages to think about, Rudolph and the lads need a new stable, and Mrs. Claus has her eye on a luxurious home spa setup, complete with a sauna, hot tub, and a massage chair. And truth be told, come January, I’d love nothing more than to pack my bags, head for a sun-soaked beach, and put the feet up for a bit. 

But here’s the thing—can I actually afford it all? I’m hoping you can sort me out with a financial plan that’ll keep me on the right track. Do that, and you’ll shoot straight to the top of my ‘Nice List.’ 

Go on, be a hero for Santa! 

Warm regards, 

Santa Claus 

Step 1: All I Want for Christmas is a Financial Plan 🎄 

If Santa has any hope of meeting his long-term goals—whether it’s keeping the toy workshop in full swing or saving for a sunny January retirement—he needs to take control of his finances. That starts with a strong financial plan. 

A solid financial plan not only helps Santa stay on top of day-to-day spending but also ensures he can build toward his bigger goals. The takeaway? A well-managed financial plan is the foundation for long-term success—whether you’re in the North Pole or Ireland. 

Step 2: It’s the Most Wonderful Time – To Set Goals 🎯 

Santa’s line of work is highly seasonal, and December brings the bulk of his expenses—supplies for the workshop, elf wages, and plenty more. Without proper planning, even Santa could find himself in a financial pinch.  

Santa has big dreams beyond Christmas: retiring to a sunny beach for the month of January, installing a home spa for Mrs. Claus, and building a new shed for Rudolph. The challenge? Prioritising, quantifying, and deciding which goals are realistic within his resources. 

Not every goal will be achievable at the same time. The key is to plan, save strategically, and sometimes delay gratification for greater rewards down the line—like those extra milk and cookies on the beach! 

Here’s where Santa’s planning gets clever: 

• Consistency is key. Christmas comes every year on the same date, which makes it relatively simple for Santa to plan for gift expenses in advance. 
• Trim the extras. Tough questions are essential— Does Santa really need those luxury silk pyjamas, or could he opt for a cozy flannel pair instead? Could he and Mrs. Claus swap their gym memberships for a cozy home workout setup? Small changes can free up funds for bigger priorities. 
• Savings first. It’s smart to let your savings goals dictate your discretionary spending, not the other way around 

With a clear plan and some careful choices, Santa’s goals—from the sleigh to the beach—are well on track. And if Santa can juggle all this, there’s no reason you can’t achieve your financial goals too! 

Step 3: A Blue Christmas Without an Emergency Fund 💰 

Even Santa can’t escape life’s unexpected surprises! An emergency fund isn’t just a safety net; it’s peace of mind. Life throws curveballs—whether it’s a health issue, job uncertainty, or, in Santa’s case, a reindeer mishap—it’s vital to be prepared. 

Here’s what Santa should aim for: 

• Save at least one year’s worth of Christmas expenses, such as gift production and elf wages. 

• Space savings evenly across the year to ensure a steady buildup without financial strain. 

Step 4: Have Yourself a Merry Little Investment 🎄 

Once Santa has worked out how much he needs to save for each Christmas and built up a tidy pot, it’s time to move on to the next step—investing! Investing isn’t just about growing your money; it’s about aligning your investments with your goals and timelines to get the best possible outcomes. 

Here’s how Santa could manage his Christmas savings: 

• Short-term savings (2025-2026): For the next couple of Christmases, Santa should keep his funds in low-risk options like money market accounts or term deposits. For money he’ll need soon and can’t afford to risk in higher-return investments. The goal isn’t big returns, but ensuring he can deliver presents without any unexpected surprises.  

• Mid-term savings (2026-2031): For Christmases a bit further away, Santa can afford to take a little more risk. High-quality bonds and perhaps a touch of equities make sense here. This strategy can help him outpace inflation while still keeping the risk manageable 

• Long-term savings (2031 and beyond): For his future Christmas operations, Santa should consider higher-risk investments like globally diversified equities. With this bucket, Santa won’t touch the funds for a decade or more, so he can ride out the ups and downs of the market. 

With advice, Santa can confidently manage his finances and ensure a stress-free future—whether on the sleigh or relaxing in retirement. A well-structured plan is a gift that everyone can benefit from this holiday season. Happy Christmas and happy planning! 🎄