How to Plan Your Holiday Spending

The Holidays are right around the corner and a chill is finally in
the air. We all have an all-too-perfect image of what the holidays
should look like. We all know how stressful making that image a
reality can be. This is the time of year where you can make the
costliest financial mistakes. We shouldn’t have to go into debt to
have a great holiday. Let’s go over the most common mistakes
and how we can overcome them.

1. Not Making a Holiday Budget

The key to making a budget is sticking to it. One recommendation
is the envelope system, meaning you set a limit on the cash you
spend. When you’re out of cash, you can no longer spend. You
won’t take the money from somewhere else to cover your
overspending. Find out more about using the envelope
system here.

2. Giving in to Peer Pressure

We all have gift-giving traditions during the holidays. The trick is
to make them fit into our budget. Limiting the number of gifts can
help cut back on spending. An added bonus is that you get higher
quality gifts for family members.

3. Impulse Buying

We know how hard it is to pass up a sale! It’s one thing if the gift
is on your list, but if not, don’t bite. Impulse buying is a sure-fire
way to overspend.

4. Running Up Your Credit Cards

The only time we recommend using a credit card is if you can pay
it off in full each month. Otherwise, you end up spending more
in interest.

5. Counting on your Holiday Bonus

Many people complain when they don’t receive a Christmas
bonus. Bonuses are nice, but you shouldn’t plan on getting one.
Start a savings account now, so you aren’t disappointed if you
don’t receive a bonus.

6. Dipping into Your Emergency Savings or Retirement

We don’t recommend taking money out of your emergency fund
or retirement if it’s not an emergency. You don’t want to
inadvertently put yourself in a tough financial position during the
holiday season.

7. Not Taking Advantage of Coupons and Rewards

Take the time to cut coupons and pay attention to your emails for
special promo codes as well. If you’re planning on using a credit
card, take advantage of rewards credit cards to use cash-back
rewards. Keep an eye out for apps that can help you find
extra savings.

Whatever the case may be, the important lesson here is to have a
plan and stick to it. If you stick to a budget, you can always find
savings along the way to supplement your holiday spending.