Festive seasons are exciting times, but they could end up leaving you unprepared for what comes after. While shopping and enjoying the festivities, you can easily spend significantly more than you anticipated. Here are a few ways to make sure you avoid overspending this festive season and don’t go into the new year with an empty account.
1. Have a list
If you go shopping without a list, you’re bound to blindly pick up a few items without knowing exactly what to do with them. Having a list is a great way to avoid overspending and prevent impulse buying.
With a list, you would be able to clearly differentiate between the things you “want” vs spending on what’s important to you.
2. Set a budget
Before the holiday festive season even begins, look at your income and determine what you feel comfortable spending on this year.
If you are going to be giving gifts to loved ones or taking yourself out, set a detailed and realistic spending limit for your expenses.
3. Find the best deals
During the holidays, stores try to do whatever they can to get you to spend more money. The festive season comes with various discounts and promotions.
Take advantage of sales, and other opportunities to save costs but be wary of sales too.
4. Spend wisely
You are most likely to start the new year broke if you drain your bank account under the guise of enjoying the festivities. Spending to impress will end up with you digging a financial hole for yourself.
Only spend what genuinely works for you and your financial needs.
5. Don’t touch your investments
Life continues after the festive season. Avoid dipping into your investments just to settle your dirty December expenses. The tussle between needs and wants can be controlled by effective budgeting and discipline.
The festive season is not a good enough reason to touch your emergency fund or investments.
Having a proper spending plan in place can prevent you from going overboard during the holidays. Controlling your holiday spending is an essential aspect of a healthy financial life. Don’t fall into the over-indebted trap during this festive season but rather, find the balance between having fun and funds.
Spending money to show people how much money you have is the fastest way to have less money.
― Morgan Housel
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