Avoid that holiday hangover!
As the holiday season quickly approaches (Halloween counts), it is the perfect time to set your holiday budget! It’s no secret we all have added expenses throughout the holidays. December used to be especially difficult for me; waiting until the last minute made me spend more and stressed me out. I changed my approach two years ago and realized I was missing the proper structure. Last year all my gifts were purchased by December 5th. I was so proud and really had no stress. I also accumulated ZERO debt. Proper planning will help you avoid falling into the debt-trap, and leave you starting 2022 guilt-free about your holiday spending! Not sure where to start? Read below!
- Make a list (check it twice!): Write down your expected expenses, beyond gifts. Here are some things I include in our family budget:
-Halloween: costumes, decor, party supplies, candy, goodie bags for school
-Thanksgiving: family outfits & food
-Christmas: decorations, gifts, wrapping paper, cards, family outfit (fancy & pjs), food/liquor, photos, family outings (museum & ice skating)
-NYE: family outfit, liquor, party supplies - Set a budget and STICK TO IT. I start by setting my overall spending limit, & properly allocate it, in order of importance.
- Giving gifts? Plan what you’re getting now. I’m all about gift cards, but if you prefer the personalized approach, write the names of the people you need gifts for (don’t forget the office secret santa!) and jot down your gift choices. Being prepared allows you to take advantage of early holiday specials (black friday!) and gives you a better chance to stay within your budget.
- Track your spending. Save your receipts and log your purchases (I use excel).
- Check your credit cards for store-specific deals: many banks offer rewards and points when using credit cards already, but many offer additional deals you can ‘activate’ throughout the season for added benefits. I love AMEX & Bank of America’s Cash Rewards. I review/activate deals every Sunday.
- Use Rakuten for Cash Back– I use it for EVERYTHING; you search by the store to see what percentage you’re being offered that day. Money accumulates and is paid out quarterly. My last payout was $253 & I have $67 earned this quarter so far. I use any money earned to put back in account I used to pay off the credit card. (link in IG bio for referral bonus!)
The holidays are a joyous time, and proper planning will help you avoid the “holiday hangover.” Putting in a little extra work not only allows you to save, but will reduce your stress. While every amount will look different for everyone, honor your budget and start the new year debt-free. Budget template coming soon!
Jo & Jade 