Financial Tips

Money saving tips for the holidays

There’s such an insane urge to splurge during the holiday season. But, it’s good to reign in on your spending habits so you can ring in a better new year with more savings in your accounts. Let’s take a look at some money-saving tips for the holidays.

  1. Follow a budget as much as possible

The amount allocated for a gift would give an impression on how much you value the person. The fact that you are making the effort to purchase an item for someone shows that you value that person. There are also expenses incurred for parties, charitable donations, and other costs, but by planning ahead on what you want to spend, you’ve already allotted the necessary funds for such without unnecessarily dipping into your main savings.

  1. Keep your spending on track

Receipts and vouchers are your best friends because they provide accurate documents or pieces of evidence on how you’ve been spending your money. With your budget in hand, try to not go overboard by trying to have lavish treats for yourself because you feel you deserve it. You also don’t deserve ending up broke. Maintain a separate account for all of your holiday expenditures. Use bank apps to monitor what’s actually happening in real time. Don’t allow your spending to become like a runaway train where you will be unable to pull the brakes. Documenting what you’ve spent will help you stay on top of things.

  1. Extras are unnecessary

Do you really need that extra latte? Should you treat yourself to a brand-new pair of shoes. You’d be surprised how much you are able to save by focusing on what are important instead of the extras.

  1. Focus on other people, not just yourself

Being part of a family with multiple numbers can cause a strain on your finances especially when you choose to gift each and every one of them. Perhaps, it would be more fun, and more financially viable, to just have a “Secret Santa.” You’ll be able to focus on your relationships more instead of obsessing over what you’re going to get.

Volunteering for outreach programs or participating in a feeding event for the less fortunate brings out the real reason for the season. You would be supporting more worthy causes instead of purchasing presents that may or may not be appreciated. Because, for those who have less, they will indeed be grateful for any blessings that come their way.

  1. Have more cost-effective celebrations

Going on a family trip every holiday season can put a strain on the finances. You can save more money by just strolling around the neighborhood to check out the decorations or baking some sweet treats at home. They can become a more meaningful and cheaper way to celebrate the holidays with your loved ones, too.

  1. Why not try a potluck

Caterings costs are high. But, you may ask your loved ones or other attendees to participate in a potluck. That will help reduce the cost. It also allows everyone to feel that they have something to contribute. The younger people can plan out games and other activities to keep a fun-filled holiday party.

  1. Explore clearance sale

Find malls offering huge discounts during their clearance sale before you take the plunge. The enticement of bagging a great deal can be rewarding, but it may also be disadvantageous. Most of these items on sale are from past seasons or old items that these brands want to get rid of. However, you need to figure out if the sale can guarantee you more savings or you might be spending again needlessly.

  1. Don’t splurge

Now that you’ve bought everything on your checklist. Don’t make a convenient excuse to just see what they have in the mall unless you won’t be tempted to go overboard.

You may feel the need to buy some last-minute items as part of the holiday rush. So, make sure everything is included in your budget. This doesn’t mean you have to deny yourself that need to shop because you’re too caught up in the frenzy of the mob. You’ve managed to plan ahead and have prepared everything. But, when you’re done, stay done.

  1. Evaluate then execute a better strategy

After all that holiday madness, it’s time to sit back and meditate. Were you able to stay within your budget? Did you give in to impulse buying? What helped you and what didn’t help you stick to the plan?

Prepare yourself as well for a credit card payoff strategy. It would be ideal to settle your balance the following month, but if you enjoyed yourself too much then really needs to set in and you must hunker down and figure out how to remove this debt. Don’t let the interests wreak havoc on your finances and try to pay them off in the next three to four months.

For decorating needs, there’s no harm in reusing the decors you used last year. Or, if you feel the need to buy, you need to make sure you have enough space in the house to store these decors so you can use them for the next holiday season.

One last thing

Holidays always entice everyone to open their hearts a little bit more. Advertisers and retailers hope to do likewise with your wallet. But you don’t need to be splurging a lot of money just to cope with this event.

There’s more to enjoy the holidays than getting too caught up in a vicious spending cycle. Spending quality time with your loved ones may be the best investment you can make. And, hopefully, you’ll manage to stay within the budget.

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