The holiday season, while festive and enjoyable, can also bring a lot of stress particularly when you have a restricted budget. Buying presents, attending holiday gatherings, and costs associated with extra trips can lead to unanticipated expenses straining your budget. However, don’t let the festive expenditure take away your holiday cheer. Here are five strategies to secure your finances this holiday season.
1. REGULATING YOUR PRESENT PURCHASES:
Buying extravagant presents can be a quick way to deplete your savings. If you gain more pleasure from giving than receiving, you might be at risk of overspending. Control your gift-giving by deciding early on who will be receiving presents from you. Are gifts for your neighbors or your kid’s teachers really necessary? Try to focus on the “essential” recipients and let go of the “nice to give” ones. Dismiss any guilt by aiming to budget well next yea. If purchasing presents for everyone hurts your budget, it’s important to recognize your financial limitations.
2. CONSIDER HOME-MADE GIFTS:
If you still have several people to cater to with gifts, think about putting together home-made presents to constrain the cost. Websites like Pinterest are packed with ideas such as DIY cookie jars or hot chocolate mug sets. You could also bake treats and package them nicely. Nowadays, it’s the thought that matters most. If your loved ones are aware of your financial situation, they’ll surely understand.
3. GIVE THE GIFT OF YOUR PRESENCE:
Prioritize the real essence of the holiday season. Rather than indulging in gift purchases, offer your time as a gift by helping others. Propose to babysit your friend’s children, or take your family to volunteer at a food pantry. Spending quality time with your family during the holidays often leaves a more lasting impression than material gifts.
4. RESTRAIN YOUR SPENDING:
Overspending is not a prerequisite for enjoying the holiday season. Considering less expensive options like sending handwritten cards instead of customized photo cards can save money. You can still participate fully in the festive season without overstretching your budget.
5. IMPROVE YOUR BUDGETING:
commit to build a “Holiday Fund” as a long-term solution. Setting aside a small amount from every paycheck will help gather the extra amount you need for your holiday expenses in the coming years.
How do you manage to avoid financial stress during the holiday season? Do you budget in advance or limit the number of people for whom you buy gifts? Share your strategies, we’d love to hear!
From, SmartAsset.com.
