358 Days
I hope you all had a wonderful Christmas and are excited about 2018! I figured since we just got out of the Christmas season and everybody is thinking about their New Year’s resolutions I would kick off the blog by talking about how to manage your finances during the holidays. This is often a tough time financially because of the gifts and traveling associated with this time of year. If you are trying to refill your bank account and start the year off right I hope you find this helpful.
So maybe this Christmas didn’t go as planned. You had every intention of buying presents early, having a set budget for those gifts and buying flights home well in advance. This turned into late night runs to Target, spending whatever it took to get the perfect present and last minute flights. Things can go off the rails quickly without a plan, but...
I have good news! You have 358 days to prepare for next year. We all know that Christmas falls on December 25th every year, without fail. But for some reason we scramble the week before, or the night before for some, to finish our shopping. This leads to overspending on gifts that might not be the most heartfelt. How would it feel to have those gifts paid for and wrapped weeks in advance? Here are a few ways to prepare for the holidays next year:
Have a Budget
It’s important to have a budget for each person you are buying gifts for. This takes out the guesswork if, for example, you need to get “one more thing” for Aunt Betty. Try to set a dollar amount for significant others, siblings, parents, friends, coworkers etc. Once you spend that money, you can check them off the list. It may be one big present or 5 smaller ones. This will help keep your spending down and give you peace of mind as you get closer to Christmas.
Start Saving Early
Again, we have 358 days until Christmas. Take advantage of this. Once you set your budget for each person, begin saving on a monthly basis to pay for those gifts. If your total budget is $300, begin saving $25 a month starting in January. I would recommend keeping this money separated so you don't accidentally dip into it throughout the year. If it makes it easier, keep this money in cash in a safe place. That way, when it’s time to buy gifts you have the money ready.
Get Creative
If you are trying to save money or you are working on getting out of debt and do not have extra cash to buy gifts, get creative. Look for ways to give your time to friends and family: perhaps offer to babysit or clean someone’s house. You can also use your skills to build or make something. These types of gifts may not be as common, but are no less appreciated.
Plan Ahead
When it comes to gifts and traveling it pays to plan ahead. If you start shopping early you have the luxury of looking around for the best prices or waiting for a big sale. If you have people that are hard to buy for ask them to send a list of what they want this year. This will remove the guesswork and make sure you get them something they will use.
If you know you will be flying during the Holidays set up Flight Tracker on Google flights to get the best flight possible. Click here for step by step directions on how to set these up. I have used this tool in the past and it’s a money saver!
These are only a few suggestions on how to relieve some of the money stress that comes with the holidays. If you have any questions, would like to discuss anything I mentioned above in more detail, or need help planning for 2018, please contact me.
ADAM