The holiday season can be a real challenge. Before you know it, the cost of gifts and other holiday expenses adds up. One way to avoid getting a money headache in January is to create a holiday season checklist and budget and stick to it.
Why budget for the holidays?
Having a budget in place will help you plan and manage your holiday spending, so you won’t end up taking on debt without knowing how or when it will be paid off. Remember to account for your regular monthly expenses in your budget and be sure to think about including extra room for increased utility expenses that come along with colder weather.
What’s my limit?
One way to calculate your spending limit is to subtract your regular monthly expenses from your monthly income. The amount remaining can potentially be used for your holiday budget. The sooner you do the math, the sooner you can start saving and building your budget.
Plan not to overindulge
Plan on spending about 70 per cent of your holiday budget so you can be confident you won’t overspend. It’s not about how much you spend or how much you can afford to spend, it really is the thought that counts.
Gift giving
When you’re thinking about gift ideas, make sure they fit within your budget and write them down! The sooner you have your list of gifts, the sooner you can start shopping and looking for deals. Be on the lookout for holiday sales and remember to compare prices between stores and online websites to get the best deals.
There are other ways to stretch your gift budget like pooling your money with your friends or family members to get group gifts. You may also want to consider getting creative with homemade gifts and baking holiday treats like cakes and cookies. Your friends and family might appreciate the thought and extra effort.
Wrapping it up
There are also costs for things like decorations, wrapping paper and greeting cards to consider. These types of expenses quickly add up so it’s important to include them in your budget.
Plan carefully, keep track of your spending and enjoy the warmth of the season!
At Saven Financial, we’re passionate about helping people save. It’s why we’re committed to delivering a simple, and safe way to save money so our members can achieve their financial goals through smart saving. Check out our high interest savings account and GIC market-leading rates and start saving today.