The weather is getting colder and the end of the year is approaching. That means that the holidays will soon be upon us. With that, comes all of the expenses that they bring. Consider the excessive gift purchases, overspending on food and drinks, and holiday travel if you have to go back home to see family. That’s why it’s important to be cognizant of how much money you are spending during the holidays. It may seem like fun to shop for your friends and family, but it can also be detrimental to your financial well-being.
While most financial gurus will advocate the avoidance of spending what you don’t have, the fact remains that many will ignore them. People often have the good intention of saving for holiday spending throughout the year, but like their New Years’ resolutions, they rarely follow through. If you’re desperately in need of quick cash you might consider using a personal loan online or from your local bank or credit union. With favorable interest rates and low monthly payments, you can avoid the trap of credit card debt, or the uncertainty of store lay-away. While the holidays aren’t far off this year, it’s never too early to start planning for next year.
Get Creative with Your Gift Giving
You can also start changing the way you think about giving presents. For instance, rather than buying something for the people you love, try making them a present instead. It may sound a bit cliché, but it is truly the thought that counts. Put some time aside on your weekends through the post-holiday winter months to learn how to create something that your friends and family will love. Who knows, it could even turn into a side gig for you in the future.
Plan Your Spending
The best thing you can do to prepare for the festive season is to give yourself plenty of time to plan out a strategy for your gift-giving activities. Start thinking of gift ideas this year that you can use for next year. This will give you plenty of opportunities to take advantage of big sales and offers that come up during the offseason.
You should consider starting a Christmas or Holiday saving accounts. Many banks and credit unions will offer these temporary accounts each year. They will typically attach a more attractive interest rate for a short period of time, which helps incentivize you to save more as well. The best part, whatever you don’t use can be deposited back into your regular checking and savings accounts. Just because you have the money doesn’t mean that you should spend it all.
Entertaining Your Loved Ones
Remember that having fun at Christmas doesn’t have to mean spending lots of money on food and other indulgent items. If you are the one who drew the short straw for hosting the family gathering this year, think of ways to cutdown on the traditional expenses that go along with it. Rather than footing the food and drink bill for the entire clan, ask everyone that’s coming to bring a dish to pass. Agree to reciprocating in the future when it’s their turn to host.