3 Simple Ways to Take Charge of Your Holiday Spending
We will talk about 3 simple ways you can keep things under control this year
Are you ready for the holidays? Instead of letting them sneak up on you and leave you scratching your head in January, let's take control of your holiday spending right now.
No need to be a money expert – we've got you covered!
Let’s get started!
1. Make a Budget and Stick to It
Think of your budget as your spending plan. It's not about what you wish to spend; it's about what you can actually afford. Imagine you want to spend $500 on gifts. Great! But you should have a clear idea of where that $500 is coming from.
For instance, you might save $40 per month throughout the year. Or maybe you start saving $100 each month from September onwards. If you have some extra money left over from your monthly budget, that can count too.
The key is to have a plan to gather the money before you start spending it.
Making a list of all your holiday expenses is essential. Of course, gifts are on the list, and if you're traveling, include that too. But watch out for those sneaky expenses like extra dinners with friends or a new outfit for that special occasion.
It's helpful to create a spreadsheet (we have a free template here), set your budget, and allocate a limit for each person or item. This way, you can hunt for deals and stay within your comfort zone.
If you need help or encouragement we are always just an email away.
2. Align Spending with Your Values
Sure, buying gifts is fun, but why are you spending money on each item? Make sure your holiday spending aligns with what truly matters to you. Are you buying things just for the sake of it?
Having "courageous conversations" can be super helpful.
Talk to your partner or even your friends and family about setting limits on gifts. It might seem a bit tricky at first, but remember, many people worry about money during the holidays, and a budget can make everyone more at ease.
This can also be a great opportunity to discuss this concept with your kids. Talking to them about spending and trying to keep it in line with the life we want is key.
3. Get Creative with Savings
Once your plan is set, it's time to save and shop smartly. Here are some tips:
Use a High-Interest Savings Accounts or Other Short Term Investments: It's like letting your money grow while you wait for the shopping season. Check out 5 low risk places to stash your cash.
Use Credit Card Rewards: Some credit cards offer rewards like cashback or travel points. Use them strategically to save on your expenses (also teach the kids and give them a credit score before they are 18 - more here).
Let Technology Help: Price tracking tools can show you the price history of items so you know if you're getting a good deal (here are some suggestions to track deals).
Final Thoughts…
Remember, the goal isn't to stop you from spending but to put you in control of your spending. So, start planning now, and you'll enjoy the holidays without the stress of overspending. Happy budgeting and happy holidays!
