How to Stay on Track with Holiday Spending
The holidays are upon us, and unfortunately, that means it’s time to start spending money on lots of gifts. Oftentimes, holiday shopping will set people back in a huge way financially. Some people will spend months paying off their credit cards for months into the new year. However, this doesn’t have to be you, so long as you shop smart and only purchase gifts you can afford. For those looking to stay on track with their holiday spending this year, we’ve put together some of our favorite holiday shopping tips.
Develop a Budget for Your Holiday Spending
Developing a budget for holiday gift-giving is pivotal. Without one, you’re likely to spend more money than you can afford. However, when you begin shopping with a spending cap in mind, it makes things much easier on you and your wallet! Your gift budget should always be based upon the amount of money you have saved up, as well as the amount of money you can set aside for gifts between now and Christmas. Don’t fall into the trap of telling yourself that you’ll pay it off over a couple of months. This will lead to you paying interest on the gifts you buy, inflating their costs, and deflating your wallet in the process!
Create a Shopping Plan
Once you have a budget in place, you can then come up with a shopping plan. Unfortunately, most people come up with a plan before they have a budget, which can lead to overspending. However, creating a budget before deciding on the gifts you will buy will help reduce spending. In your shopping plan, be sure to lay out the items that you would like to buy, and the best places to get them. Check each retailer periodically to see if you can find a deal on one of the items you’re buying. Remember, each dollar that you save is another dollar in your pocket!
Start Saving for Next Holiday Season
It’s never too early to start saving for the holidays, so start doing so as soon as possible! In fact, the earlier you start saving, the more money you will be able to spend. If you start saving for the next holiday season now, you’ll have the added benefit of not having to go into debt or cut back on holiday purchases. Saving for the holidays year-round is a win-win for everyone involved! Fortunately for you, you can automate the saving process by having a predetermined amount of money set aside from each paycheck into a savings account each pay period. This makes saving a breeze!
Consult With a Financial Professional
Developing a spending plan for the holidays can be tough, and planning out your life’s finances and retirement is even more difficult. That’s why enlisting the help of a trusted financial planner is key. A great financial planner will help you keep your finances on track, not just through the holidays, but throughout the course of your lifetime! Urban Wealth Management has been helping families across the country to stay on track financially for years. With decades of experience collectively, you are in good hands.