Enjoy the holidays by planning ahead
The holidays are a time for seasonal cheer, catching up with family, and for some—financial panic.
If you recently looked at the calendar and realized gift-buying season is closer than you thought, don’t worry. You can organize your finances by making an effective budget. Follow these 5 steps to better avoid going into debt this season.
1. List All of Your Expenses
Are you buying presents for everyone? Hosting a party? Attending a holiday concert or event? Write a list of everything you intend to spend money on (and how much each costs), then prioritize. You don’t have to cross anything off just yet, but make a mental note of which items are more important.
2. Set a Limit
Next, review your income and any money you’ve set aside for holiday expenses. Your goal is to figure out what you can afford without going into debt. If you have to dip into your savings, make sure to keep a cushion for any emergency costs that might come up. Now you can decide which expenses are important, and which ones can be crossed off your list.
3. Research Seasonal Sales
Sales go hand in hand with the holidays. This is when many retailers make a large portion of their annual revenue, so they want to attract as much business as possible. Find the best deals by signing up for email alerts and following brands on social media. You’ll be among the first to find out about those special seasonal sales. Also watch for Black Friday and Cyber Monday promotions.
4. Comparison Shop
Unless you’re searching for a unique gift, your desired item is probably available from multiple retailers. Fortunately, the Internet makes comparison shopping easy, especially during the holidays when every company is trying to compete for your business. Make sure you visit different websites and do some research to find the best deals.
5. Pros and Cons of Payment Methods
Shopping online can make it easier to track your purchases afterward, though spending cash gives you immediate feedback about how much (and how often) money is leaving your wallet. During the holidays, when you’re purchasing many items at once, the cash method helps you realize how much you’re spending, though online shopping gives you an easier way to see all your purchases at a glance. Try using cash for some of your shopping, and see how that affects your budget. You’ll have the chance to shop in person, support local businesses, and possibly reign in some of your impulse purchases.
Follow these simple rules, and keep your holiday spending in check. If you still need some assistance with your seasonal finances, start by learning about a Holiday Loan.
Learn More: Holiday Loan
Article adapted from BALANCE Financial Fitness