Budget for the Holidays

If you are someone who is in love with shopping, you likely struggle to stay within your budget due to the number of sales that arise during the holiday season.

Although there is no place like home for the holiday season, people struggle with the temptation to avoid overspending on gifts, traveling, and parties.

Even though there is social pressure to cope with by providing expensive gifts and traveling with your family and friends, but it isn’t worth to spend all your savings.

While you prepare for post-holiday debt blues, online websites promote their products through ads such as check out credit spring today and many other commercials which increases the curiosity among consumers.

However, with careful planning and a savings account, you can enjoy your holidays without worrying about spending too much. And will likely avoid a trip to the bank if you carefully pay attention and implement the following technique in your lifestyle.

1. Treat yourself less:

Coming home from a tiresome week where your boss made you sit in the office a few extra hours, and you decide to release some of the stress by going out with your friends to the restaurant. I am sure that pretty much everyone can relate to the above statement, but going out fancy dining every week can be heavy on your pocket, particularly if you are thinking about saving money. 

According to an estimate, if you skip lunch and coffee for a year, you can save up to $2500 every year. Now think if you put that amount in a savings account for a year, that would leave you enough money while you are on holiday and you won't be worried about cutting costs at that stage. Although it may sound too trivial but saving a small amount of money at the beginning will come in handy when you decide to pick your favorite holiday destination.

2. Keep Cash with you:

Although more and more people are deciding against keeping cash with them, and it is easy to agree with them. In today’s society, people do not carry hard cash with them both from a security point of view, but also it is hectic to hold large amounts of money. However, keeping credit cards with you sounds fun until the bills start arriving, and you realise that you’ve spent far more money than you decided to at the beginning of the month. 

Keeping cash with you will help you to maintain your budget since you can only use the amount you withdrew from your bank account and can resist the temptation of overspending after you reached your spending limit for the month. Since you are only spending the amount you planned at the beginning, you will have saved enough money for the holiday season and would not have to worry about taking loans later.

3. Maintain a shopping list and stick to it:

You must have heard the saying that “don’t go grocery shopping when you are hungry.” The whole objective of this statement is that you will end up spending more money if you let your heart rule over your brain. Everyone must have experienced going to a supermarket and end up coming back with more items than you intended to purchase at the beginning. It is why you need to make a shopping list beforehand and stick to it.

4. Do your homework:

You should start planning early about the gifts that you will purchase for the holidays and plan your budget accordingly. You can store the extra money that you saved into a separate savings account so that you can use it for the holidays so that future costs incurred would not put you in too much trouble. By adding small amounts every month into your savings account, you will have enough money in store so that you start your holiday season without much difficulty.

5. Give a homemade gift:

Arriving at the party with an expensive bottle of wine may seem like a perfect gift for the host, but it’s not the only way you can show affection to people. You can also bake a cake or something which will probably make the host happier since you would have put in the effort. 

Cookies and other baked goods can also be used as an alternative to cakes since you will be doing something crafty and save money, which you can use later. The money that you would save will give you that opportunity to make new jewelry, ornaments or buy that expensive dress that you always loved when you went to your favorite store.

6. Do not play Santa:

It is quite a temptation to pick up souvenirs for your friends and family every time you are coming from a trip abroad. Although you would want to buy expensive gifts for your family, there is no need to return from France with four leather boots for your brother. 

Nobody wants to act miser, but the sad reality is that there is only a limited amount of money we earn, so before going on the trip, you should make a list of the people you will buy the gift for and buy in bulk if you can negotiate a discount. Always keep your budget in mind and do not go for souvenirs thinking that they are cheap since it can add up to your cost.