Personal finance

6 best tips for spending wisely during the holiday season

Usually, people overspend during the holiday season. Gifts, festive activities, and travel – these all increase your expense than regular days. Your holiday season does not have to be a total budget-buster. You can cut down your expenses and still can have an amazing holiday experience. If you do the right planning, then you can live a whole year without any debt issues. There are some ways you can save your money this holiday season.

Here are few tips to spend wisely during the holiday break:

1. Make a budget

You can plan your holiday budget. When you are deciding the budget for gifts – you can decide general price or allocate a specific amount to each person on your gift list. Your holiday budget not only consist the cost of gifts.

Consider expenses like – parties, travel expenses, holiday-themed activities, and charitable donations. Creating a budget is not enough. Keep checking your budget during the holiday season so that you can make sure that you are not overspending.

2. Start with a list

Create a list of people for whom you plan to buy gifts. You can include family, friends, colleagues, neighbors or anyone else from your life. After creating a list, make a budget for gifts. For example, if your gift prices increases and don’t fit in your budget, then you can consider reducing your gift list.

List of people will help you to buy gifts in the budget and no one from the list will be left behind without your gift. If your budget is too tight and you can’t shorten the list, then reduce the amount you spend on each person.

3. Keep your savings on track

Saving should be a regular part of your monthly budget. You must be disciplined when it comes to saving money. For regular saving, you can consult your financial advisor. This holiday season gift yourself – a financial future goal. The financial advisor will help you to have regular savings.

In case of emergencies like job payoff, car repair or medical procedure – saving will be useful. You can even have your saving account. Whether its holiday season or regular days – keep saving without fail. In any month, if you could not save a certain amount then next month double up the amount.

4. Avoid overspending on credit card

Credit cards are convenient when you want to buy now and pay later. You have to make sure that at the end of the month, you pay the bill of your credit card. Consider using a 0% credit card. This type of credit cards does not charge interest for a set amount of time.

Make sure you don’t overuse the credit card. Otherwise, at the end of holiday season, you will likely to have a debt of interest.  If possible pay in cash and avoid using a credit card unless it’s necessary.

5. Comparison Shop

Online shopping is becoming the new trend. Online price comparison can help you to identify the best deals. Always look for discounts and beneficial deals. The online shopping is a great way still be careful about shipping charges.

To get notified for discounts for the retailers you are browsing, install Honey Google Chrome plug-in. when online purchasing, it always happens that for the same product two different websites offer a different price. Dig deeper to find out ways to pay less so that you can stick to your budget.

6. Choose cheaper tradition

Traditions make your holidays special. Some traditions turn out to be costly. For example, holiday travel or surprising kids with grand gifts – is tradition then you may overburden yourself with over expenses.

There are some traditions that can create lasting memories and cost little. For example, you can plan baking holiday treats, join in organizations requiring volunteer and take a winter stroll in the woods. All these ways are good way to connect with your loved ones without worrying about the budget.

Final word

This year, start planning your holiday budget in advance. You can even open a saving account, especially for the holiday season. This way you will be able to save a certain amount monthly. Savings will be useful to enjoy the holidays fullest without worrying about debt. Have you created your holiday budget? Let us know in the comment box.

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