Savvy Holiday Spending

Plan Ahead to Splurge Less

In case you need a reminder, the holidays are no time to go into debt. And yes, we know this is easier said than done. In a world where social media influencers are encouraging us to splurge – and we can buy things on our smartphones with two clicks – it can be hard to keep holiday spending in check.

But, here’s the thing - your friends and family don’t want you to put yourself in a difficult position come January just so they have a few more gifts to unwrap now. And it’s possible to have a perfectly lovely season – and stay out of debt – if you remember a few key strategies.

Create a Holiday Budget

• Plan Ahead - Set up a spending plan before you start shopping for the holidays.
• Review Cash Flow - If you haven’t done this already, now is a great time to review your current cash flow situation.
• Budget Accordingly - Don’t plan to spend more money than you have, period. Living within your means during the holidays may be a real challenge, but if you create a budget and then follow it, you are setting yourself up for success in the New Year, financially speaking.

Pause Before You Purchase

Limited-time offers and flash sales are designed to make us want to spend our money for fear of missing out on a great deal. It’s very easy to be impulsive in the moment. That’s why it’s a good idea to:

• Pause for a few minutes before you complete an online purchase.

• Get up from your laptop, put down your phone, get some water, or take a walk.

• Think about if this purchase is absolutely necessary and fits within your budget.

• Follow the 24-Hour Rule. That means for large purchases, sleep on the decision, and give yourself a good 24 hours before taking the plunge.  

Unsubscribe to Emails and Text Alerts

Here’s a way to declutter your inbox and help save some cash. The emails alerting you to specials on steaks, wine, and shoes that keep popping into your inbox or pinging your phone can be silenced with just a few clicks. Removing these temptations to make unplanned purchases can help you stick to your budget now and in the new year.

Gifting Alternatives

Even if your family or close circle of friends have never done this before, it’s perfectly acceptable to change up your holiday traditions if things are tight.

• Prioritize Experiences - You could plan a family game or event in lieu of gift giving. Most families enjoy the time together more than a gift anyway.

• Draw Names - You can have your group draw names so that everyone only has to buy one gift instead of a dozen or more.
  

Maintain Long-Term Goals

Just because the holidays arrive doesn’t mean you can neglect your financial future. It's still important to:

• Save for retirement

• Pay down debt

• Make regular investments

What about a year-end bonus? If you're a lucky someone who does receive a year-end bonus, consider using it strategically to boost your financial goals. One great idea is to use a bonus to grow your emergency fund.

Plan Ahead for Next Year

Once the holiday season ends, start the New Year strong by:

• Setting aside a certain amount each month in a savings account for the next holiday season. (Automatic transfer is a great way to do this!)

• Considering what financial goals you want to work towards and set systems in place to achieve them.

Before you know it, you’ll have a sizable chunk of money set aside and financial peace that lasts throughout the whole year!