The holiday season is already upon us! So keeping an eye on your finances is even more critical now than ever.
During the holiday season, gift-giving is a significant cause of unrestrained spending, so it’s essential to know how to control your spending. This article provides beneficial tips to help you plan for your holiday spending.
1. Have a holiday spending plan
A plan is essential for making the holidays less stressful. Keeping track of your spending is vital at all times, but it becomes even more critical during the holidays. Implementing your plan with the right tools is also a key to keeping your spending under control. A helpful tool is available with Koho Financial!
You might want to open an account with Koho Financial. Then download the mobile app to make managing your spending easy!
2. Have a Budget to keep your holiday spending in check
Budgets are a vital tool to avoid over-spending. This holiday season, a budget can help you stay on top of your finances. But sticking to it is another story. To find out if your budget is unrealistic, compare what you spent last year to what you expect to spend this year.
You can also budget all of your expenses and leave some money for last-minute expenses, unexpected purchases, and impulse purchases. It will be easier to avoid exceeding your budget limit if you have a buffer in your budget.
3. Try the envelope method
The purpose of budgeting using the envelope system is to keep your spending under control. Let’s say, for example, your holiday budget is just $2,000. Keep the $2000 somewhere safe in an envelope. Then, when you go shopping, take what you will need from the envelope to buy your gifts. Make sure you stick to the list because you can’t put more money in the envelope – once it runs out, it runs out.
4. Use cash to keep your holiday spending in check
It’s easy to know exactly what you’re spending when you pay with cash, and there are no hidden fees. Paying cash during the holiday season can also help you avoid building up debt. Using a credit card is okay as long as you pay off your debt promptly. Any missed payments on your credit cards during the holidays could hurt your budget for the coming year.
5. Shop early
To keep your holiday spending in check, start early to give yourself time to compare prices. Instead of waiting for Black Friday or Christmas sales to take advantage of sales on certain items, spread your holiday shopping throughout the year. In addition, as the price of food items consistently increases, it’s a good idea to buy more grocery items in bulk to save money.
6. Take advantage of rewards credit cards
You can reduce your holiday costs by using rewards credit cards. A card that offers perks, points, or cashback on purchases will allow you to get back a portion of what you spend on gifts.
Moreover, you might consider redeeming some of your credit cards points like the National Bank World Mastercard as gift cards or other items you can give to loved ones or as airline tickets for holiday travel.
7. Check Online for Coupons
In addition to reward credit cards, the online coupon is another way to reduce holiday costs this season. Now you can use websites such as Groupon to have instant access to a wealth of coupons in a single click.
Also, if shopping online, many stores like Coast Appliances offer single items 10-20% off discounts or similar if you buy from their store.
In conclusion
I hope these tips help keep your holiday spending in check this holiday season. Spending within your budget will allow you to enjoy the festivities without being concerned about the long-term impact they will have on your finances.