The holiday season is the most precious time of the year, but also the most expensive. Let’s help you manage your finances so that you don't get wrapped up in overspending this year.
Have you been a victim of going overboard during the holiday season? Let’s face it, planning and budgeting are the last things on anyone’s mind during the holiday season. I have also fallen victim to it a couple of times. There’s something about the office secret Santa, vacation deals, and end-year sales that gets me spending more and more. However, celebrating doesn’t have to leave a dent in your wallet. Use these six practical tips to manage your finances and survive January blues.
6 tips to manage your finances during the holiday season
1. Stick to your budget
Do you have a budget? Is your regular budget the same as your holiday budget? The best approach for the holiday season would be to stick to it. However, if you don’t have a minimalist budget, this might be the right time to make one. Figure out how much you want to spend and how much you can afford before spending a penny. Don’t forget to consider the big purchases because they will most likely take a big chunk of your budget. Budgeting gives you a clear picture of how much you can comfortably spend.
How to know if your holiday budget will work for you
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The budget should not take away from your holiday shopping experience. Therefore, you should be able to make the purchases you want and have some money left for January spending.
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It gives you room to think out of the box when it comes to buying presents for your loved ones. If you want to make a big purchase and you don’t have the funds, you can still make a meaningful purchase that fits your budget.
2. Look for deals
The beauty about getting to manage your finances during the holiday season is the endless end-of-year deals offered by most stores. Take advantage of any deals and discounts to manage your finances. List down everything you need to buy for the holidays and shop around for the best deals. If you do it right, you will have enough room to include more items on your list. If you are an impulse buyer, moving from store to store will tempt you to go over your budget. Therefore, it would be best if you settled for internet shopping. Check out the social media pages for the stores that are offering great discounts and use this to manage your finances.
3. Always include miscellaneous holiday expenses
The holiday season is about giving gifts and making your loved ones happy. Most people forget to include their other expenses in the budget. Some of the other expenses you might want to include are travel costs, hosting costs, babysitting costs, and of course food costs. As you manage your finances this holiday season, give some priority to the miscellaneous expenses.
4. Factor in your regular expenses
The world doesn’t stand still during the holidays. Therefore, after the holiday celebrations, you still have to think about your rent, bills, mortgage, school fees, credit cards, regular food expenses, and loans. Most offices pay their employees halfway through December, making it hard to stretch out that salary to last throughout the holidays and into the last leg of January. Always factor in all the payments that are required from you until the end of January to avoid January blues.
5. Opt out of added expenses
Which extra expenses are worth your money and time? Do you want to participate in the office secret Santa? What about that additional spa date charge? A lot of these fun extra events during the holidays eat into your budget. Take time to consider which ones are worth your time and which ones will just drain your budget.
6. Pay off any holiday debts fast
Just because you have a budget and are planning to manage your finances this holiday doesn’t mean that it will work out. If you have built-in holiday debt, you should deal with it head-on. Switch your credit card to a 0% or low-interest card that can help you manage your finances as you pay your debt. If you have multiple loans, list them down and figure out which ones have high-interest rates and pay them first.
Conclusion
The holidays are not about spending money only; they are about spending time with your loved ones and being grateful for them as you manage your finances. We understand the guilt and pressure you might have to create the perfect Christmas. But it’s also good to work out a sound plan that allows you to stay away from the pressure, anxiety, stress, and debt when January comes around.
