The holidays are finally here, which along with all the cozy feelings it may bring you, can also mean a great deal of expenses and spending. The average person spends at least $900 on gifts alone during the holiday season. And then there is all the other holiday spending, such as traveling, food, decorations, etc. This could mean a good amount of debt to sort out after the holidays.
As your insurance agent, we offer financial services and retirement planning. Making a habit of going into debt every holiday can affect your long term savings goals. The holidays mean different things to different people, but for most, it's about celebrating with the people that you love and care about. Going into debt during the holiday season only adds stress and dampens the true spirit of the holiday itself.
One of the best ways to prevent debt through the holiday season is to stick to a holiday budget. This will help keep you out of debt so you can concentrate on the spirit and meaning of the holiday season instead of having to deal with fiscal strain.
Prior to making a list of all of the things you want to purchase for the holidays, you want to decide on a realistic holiday budget. Start off by seeing how much cash you have put aside or just how much you can afford to spend on the holidays. We are always here for you, and as your insurance agent we want to make sure that you are able to stay on track with your financial goals. So bear in mind, you've got other bills to cover, and life can happen - so be realistic with your budget.
Once you have a list and what you can realistically afford to spend, then you will need to determine how to follow your holiday budget. The holidays don’t need to be about buying gifts for everyone. Keep your budget in mind and only buy what you can afford, even if this means that you may just give one present. It's the thought that counts, not the gift or the quantity of gifts.
Make sure you do your research on what you will be purchasing so that you are always buying the best products at the best prices, and find ways to lower your spending in other budget areas. Many families have expenses that they may be able to cut out. Temporarily doing this can offer you more flexibility during the holiday season.
If you can not find ways to reduce your spending, then maybe try to find a side hustle to make more cash. This can make the holiday season a bit more enjoyable since you won't have to go into debt or make use of your savings in order to purchase holiday gifts.
Although, this suggestion won't always work for this holiday season, you can begin saving and preparing for next year's budget. As your financial services insurance agent we recommend looking at what you're spending this year and using this as an approximate savings goal. You can then start setting aside a bit of cash every day, every week, or even every month. This really can take the sting from the holiday spending and keep you from going into debt. Every little bit helps when ensuring your financial future.
No matter what holiday you celebrate, don't forget the sprint of the season. You don't need to devote a good deal of cash to celebrating, rather consider spending more quality time with your loved ones.