The holidays are upon us; and as much as it is the most wonderful time of the year- our wallets tend to suffer the most during this time of the year.
Families and friends expect gifts from us; we want to spend every last coin on yummy holiday treats; random plans keep popping up – and trcking your finances can become strenuous. It’s however important to be overly vigilant with your spending during this time.
Here are ways you can save [instead of spend] during this holiday season.
Budget, Budget, Budget; and Stick To it!
It goes without saying, budgeting is one of the crucial steps to achieving financial freedom; and budgeting during the holidays should not be an exception.
Set aside money you need by calculating your income vs expenses, then define your holiday spending limit. Have a budget for how much you are going to spend whether it’s for holiday gifts, dinner, parties or shopping. Allocate a specific amount to everything you need to buy or for any occasion you want to attend. Remember to cut down on unnecessary stuff and include a cushion for unexpected stuff.
Have a list
Draft down a list of all the things you need to purchase right down to the simplest of things. Shopping lists for example are efficient in making sure you do not overspend. Make sure you commit to the list.
Track your spending
Account for every shilling you spend on your budget. Use cash if necessary as it is easier to overspend when using credit or debit cards. Withdraw your holiday budget in cash and manage your various expenses.
Treat Yourself a bit less
It is tempting to overindulge during the holidays; everyone is doing the same, anyway. Spoiling yourself is allowed but it should be within your budget. Discipline yourself to know when to stop.
Be Creative while sharing gifts
Don’t spend an arm and a leg just to show your friends and family that you care. Gift them with a handcrafted gift rather than a purchased item. The gift will still be appreciated.
Set aside some amount of money by using online applications such as the Mombo App that allow you to open savings account from the comfort of your phone at anytime of the day. Use such savings accounts to set aside extra money each month as part of your holiday savings and holiday savings account.
Think Ahead to Next Year
Think of the next season by-:
- Purchasing holiday items on time.
- Taking advantage of holiday vacation offers by hotels/ airlines shared earlier in the year
FINAL NOTE: It’s all too easy to get caught up in the spending cycle during the holidays. However, if you’ve got a plan in place you don’t have to fear your bank account come January.
That said, do you have a holiday budget?