7 Tips to Help Budget for the Holidays
T'is The Season... For Budgeting
Holiday seasons are times where you get to share memorable moments with your loved ones. It is also an opportunity to take personal time off and relax. Whatever is the case for you and whoever you are sharing the holiday with, you need adequate budgeting to ensure you get lasting memories.
Budgeting helps you avoid impulsive spending, and you get to identify what you really want to do during the holidays that will give you the desired satisfaction. Here are some tips on how to budget for the holidays:
1. Set a Spending Limit
Putting a cap on your holiday expenses will give you a sense of control over the activities you have lined up. It ensures you pick destinations and activities within your budget and stops you from chasing expensive fantasies that will leave you high and dry after the holidays.
If you are going alone, you will need to check your savings and potential income before the holiday period and decide on how much you are willing to part with for fun. Ensure that it does not significantly affect your important financial obligations.
If you are going with your loved ones, it will be more fun to pool funds together which can widen the scope of activities and holiday destinations you can choose from.
2. Outline Your Holiday Destinations & Activities
This will be a follow-up to putting a cap on your holiday expenses. You will be able to pick a holiday destination that is within your budget and decide on the activities you want to enjoy.
It is important to be detailed when deciding on this so as not to encounter unexpected expenses which may stretch your budget thin and limit your fun activities.
You could make inquiries about where you want to go and how much activities like spa, bowling, shopping, and other fun activities cost to know what to expect and how to spread your budget across all these activities.
3. Start Your Travel Plans Early
The holiday season is always busy and there is a traffic of people making their reservations for the holidays.
It is advisable to start your planning early, so you won’t end up spending more than you should.
Book your accommodation and flight in advance to avoid the hike in prices during the holidays. It is advisable to make your holiday plans months ahead of time.
4. Be On the Lookout for Sales & Promos
There are usually several discounts, sales, promos, and coupons you can enjoy during the holidays.
The smart thing to do is to be on the lookout for these benefits to get good deals on gifts, accommodation, and trips.
These will create more room for more activities in your budget and allow you to enjoy your holiday to the fullest.
5. Make A List
It can be difficult to narrow down who you will be buying gifts for, but it is important to be honest with yourself about who you truly need to buy for.
Once the list of names has been created, take the time to write down what you would like to get them for a gift.
Once you have solidified your list, stick to it. This will help you avoid impulse buying and can also help keep you within your budget.
6. Get Creative
Thinking outside the box with your gifts can save you some serious cash.
Thoughtful homemade gifts can often be just as meaningful as store bought presents, if not more so.
Baked goods, photo albums, and other DIY projects are always well received and are a great option to help you stay within your budget.
7. Avoid Depending on Credit Cards
Finally, try to avoid spending on credit cards this holiday season. It is easy to spend more than you intended to and employ a “worry about it later” attitude.
If you must use a credit card because you are purchasing items online, or you are hoping to accumulate reward points, still use all the strategies above and be prepared to pay the card off as soon you make your purchase.
Planning is a very essential part of our day-to-day activities, and it also extends to having fun during the holidays. The key is to have a budget cap and outline what you want to do during the holidays.
You should also ensure that you stick to your budget no matter what. If you go outside your budget, you may end up spending more than you should during the holidays.
Have Questions?
Contact a Ward & Uptigrove Wealth Management representative
at 519-291-3040 or email info@w-u.on.ca.
