The holidays are almost here. It’s time to get ready for festive parties, family gatherings, and…financial stress? Hold up, let’s scratch that last one. The holidays should be a time for celebration, not financial frustration, yet why do so many people find themselves worrying about their bank accounts this time of year? With the amount of commercialism we’re bombarded with around the holidays, it’s tempting to splurge on all the latest gifts and gadgets, but doing so without a plan can get you in a sticky financial situation.
This year, follow these five tips to help you celebrate the holidays without breaking the bank and still give great presents to your friends and family.
From the get-go, create a list of who/what you need to buy for, and assign a dollar value to each. Knowing how much you can spend will help keep you on track throughout the season, and if you stick to it, you should be able to avoid those bank account notifications containing the dreaded “overdraft” or “low balance” words. Most importantly, consider the consequences if you go over budget, such as paying overdraft fees or credit card interest if you cannot pay your balance in full. Holiday budgeting can help make sure this doesn’t happen to you. See how BankSouth can help you set up a budget in online banking.
As you tackle your holiday shopping, be strategic about finding the best deals. Black Friday, Small Business Saturday, and Cyber Monday are the most obvious times to snag a deal, but you can also check with your favorite stores to find out when they’ll be offering sales. If you prefer online shopping, install browser extensions like Honey or Wikibuy, which automatically search for and apply the best discount codes to your order.
Do you use credit cards to earn rewards? If so, try to save them up for the holidays to cash in those points for clothing, tech, gift cards, and more. Also, think about selling some old books, clothing, or furniture you no longer need to earn some extra cash, then use those funds to pay for or offset your holiday expenses.
Whether it’s for holiday decorations or gifts for the family, DIY is a great way to be festive and save money. Embrace your creative side, and enlist your family and friends to join in on the fun. Not only will the items you make be more meaningful, but they will also give you an opportunity to make memories you’ll cherish.
Speaking of making memories, isn’t that what the holidays are all about? Be careful not to get too wrapped up (pun intended) in the consumerism of the holidays. After all, can you remember all of the gifts you purchased and received last year? If you’re going to spend money around the holidays, consider spending it on experiences. Treat your family to a fun day or evening where you can recharge, have some fun, and create holiday memories that will last. Fun fact: Most experiences cost less than a gift!
It’s important to go into the holiday season with a plan and a budget to ensure you stay within your means and don’t spend more than you can afford. Happy holidays!
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