Holidays are one of the most joyful times of the year but purchasing presents, decorations, and feasts can easily get out of hand. By overspending, you could put yourself and your family in financial trouble. Even during the holiday season, you still need to prioritize your financial wellness. Continue reading for 5 financial tips for the holidays.
1. Build A Budget
Holiday shopping is a once-a-year expense. You may have been saving throughout the year to prepare for the holidays, but it is still important to not overspend. Build a budget with an overall amount that is reasonable and feasible. From there, you can break down a specific amount for each person on your gift list. After making a budget, it is important to stick to it. Impulse purchases made at the last minute can quickly add up and send your budget off track.
2. Make A List
Compile a list of all your gift ideas for your loved ones. Make sure all the items are within your set budget for each person. If the items are over budget, you will probably want to reconsider the gift. Once you have finalized your list, you can start your holiday shopping.
3. Shop Smart
By starting your holiday shopping early, you can plan accordingly and take advantage of sales. If you start early enough, you could even knock out your shopping list on Black Friday and Cyber Monday around the Thanksgiving holiday. Sales and promotions are one of the best ways to save money during the holiday season. If you have specific items on your gift list, you can cross-check different stores and websites for the best prices.
4. DIY For the Holidays
When it comes to gift giving, it is the thought that counts. If your budget is tight, do not be afraid to create handmade gifts. DIY gifts can cost less and be more meaningful since you spent time and effort to make a gift from scratch. If you are not very crafty, you could also offer your time or an experience.
5. Use Your Credit Card Wisely
It is extremely important to be careful with using credit cards for your holiday spending. When using credit, it may be tempting to overspend and pay down the balance over the next several months. While credit cards offer opportunities for cash rewards and travel points, using cash or debit cards will allow you to spend only the money that you have set aside. If you do use credit cards, do not carry balances. Use the savings you budgeted for holiday shopping to pay off the debt as soon as possible.
The holiday season is a time of giving, but you do not want to put your finances at risk. To make sure you stay on budget during the holiday season and throughout the year, have a knowledgeable financial advisor on your side. Our financial advisors at Curo Private Wealth can help you reach your personal financial goals. Schedule your consultation with us today.