*First National Community Bank’s blog does not constitute legal, tax, accounting, investment or other professional advice. Recipients should consult their professional advisors for advice.
It’s November and the holiday season is gearing up for full swing. With proactive planning like establishing a holiday savings plan and budget (and sticking to it), you can avoid racking up debt such as credit card bills and keep your spending in check. Here are some practical tips to help avoid overspending this holiday season.
- Establish a Holiday Savings Plan: Last month’s blog mentioned this ever important first step to avoid holiday overspending – ‘ESTABLISHING A HOLIDAY SAVINSG PLAN.’ As the holidays are now just around the corner, it is important to start saving if you haven’t already. You can set up a separate savings account or envelope for holiday purchases and contribute a set amount each week. This can help reduce the financial strain when the season arrives and help you avoid charging up credit cards or dipping into emergency funds. Plan that visit to family out of town early to take advantage of cheaper fares and accommodations. Also, don’t forget to estimate and budget for gas expenses if you’re driving, and use tools to find the cheapest gas along your route. By organizing these details early, you can manage your travel costs more effectively and enjoy your holiday visits without the burden of financial stress.
- Establish Your Holiday Budget: Planning and setting the amount you have to spend and identifying who is on your holiday shopping list is critical in ensuring you don’t overspend during the holidays. Be realistic with your spending and purchase only what you can afford. Make sure to list every holiday expense you can anticipate, including gifts, travel expenses, holiday food, décor, etc. Remember, it’s the thought that counts and homemade gifts are a great way to give something thoughtful and unique and can save you money.
- Track Your Spending: As you shop, keep a log of exactly how much money you’ve spent for each person and make sure it matches up to the budgeted amount. Review your budget after each purchase to make sure you are staying on track.
- Shop Early & Resist Impulse Purchases: Many retailers are starting their big holiday sales earlier each year. While the day after Thanksgiving used to boast the biggest deals, you may be able to find the same bargains earlier in the month – not to mention, your desired items are more likely to be in stock! Be sure to check out online deals and browse the stores in person that you know you will be on your shopping list to compare deals. By doing your research and shopping early, you can help avoid impulse purchases and overspending at the last minute.
By implementing these tips on avoiding overspending during the holidays, you can rest assured your holiday season will be less stressful and ensure your finances are in check this holiday season and beyond.
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