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Budgeting and holidays don’t go well together for most people. It can be difficult to manage finances when you’re in the holiday spirit. You let yourself loose thinking you deserve to party a little and that is where you fall into the trap. A little overspending on long due item is okay during the holidays, but spending a fortune on things you won’t want in a couple of weeks is not the best of decision. And the following are some examples on how not to go broke during the holidays.
Important Side Note:
If you’re in debt, then I would definitely read Dave Ramsey’s book The Total Money Makeover which you can check out here. He’s helped MILLIONS of people climb their way out of debt and have financial peace and security. So DEFINITELY check him out!
Also! He has another great book called the Legacy Journey which is a great read. Check it out here!
Adopt a shopping strategy: set a budget for every item you have been meaning to buy including house essentials, accessories, and toys and stay within that budget no matter how pretty that $500 vase is; it really isn’t worth it. Make use of money management apps which will help keep you on track and are very useful if you’re an impulse buyer.
Hey, also want to know the 11 habits of people who always have money? Click here to check them out!
Limit your gifts: when you first think of the word ‘holidays,’ gifts come into the mind instantly. However, be choosy in who to get gifts for. While you may think it’s important to get a gift for your daughter’s teacher, it is not expected, so don’t pressure yourself.
Buying more to spend less: don’t fall for that buy 2 get 1 free offer; it’s not smart. This is one of the sales tactics to make you think you’re saving while you’re going over budget. They end up raising the price tag while claiming that it’s a “sale.”
Need or want: whenever you’re about to buy something, ask yourself: do I really need it? We often purchase things we can easily go without. People get into the habit of shopping for things they might never end up using.
Invest: before the holiday season begins, invest a portion of our savings into stocks or some other form of non-liquid asset so you can’t spend it. The savings can later be used for traveling, retirement, or funding a good cause which will bring you more satisfaction.
Reflect: is the opportunity you want to spend on, something you can’t postpone? Will it be as important to you in another year as it is now? If the answer is yes, go ahead and spend the money. However, there are very few things that fall into that criteria so make sure you’re making the right decision.
These habits will hopefully prove effective to save you from going into debt! So try them out and let us know how it goes!