Have you started your holiday shopping yet? The costs that come with the holiday season can be enough to make even the most festive person less joyful. Don’t let worrying about finances dampen your holiday spirit. These budgeting tips will help you deck the halls without feeling like the Grinch.
Overspending
All too often we spend more than originally planned on the people we love. To avoid this, make a holiday
spending plan early. Include those who you wish to buy for and a reasonable amount you plan to spend on each person. It’s easy to forget all the little things you grab along the way, so make sure to track even the smallest expense. Visiting family out of town? Don’t forget to factor in the costs for travel and lodging, both of which are often more costly this time of year.
Increasing costs
Price increases alone make the holidays more difficult, but setting a budget and making a spending schedule can make holiday spending more manageable. Select a specific gift to be purchased and assign it a time when you can budget to purchase that item. For example, if you are paid bi-weekly, plan on one purchase every two weeks when you get paid. This will help you avoid rushing to purchase these items alongside last-minute holiday crowds.
So many places to be
Compared to recent years, you may be invited to attend more in-person gatherings. For some, this may be a welcome change from years past, but it can also take a toll on your finances. To help with this, consider purchasing one “family gift” rather than individual gifts for the household hosting the holiday
event. For example, something they can play, enjoy or use together. Check with the hosts; they may be drawing names for a gift exchange or have a set spending limit that might help you stay within your means.
Aftermath of credit card spending
Keep the winter holidays jolly by staying on top of your credit card spending. To avoid the shock of a large credit card statement in January, only use your credit card to make purchases that can be paid in full by the next billing cycle. Being conscious of your spending and not making spontaneous purchases will help you stay within your budget.
By implementing a few of these strategies, you can stretch both your budget and joy this holiday season.