The holidays can be challenging. For some, loneliness can be really difficult; for others, the biggest stress is arguing with family over whether to watch Die Hard or The Muppet’s Christmas Carol. Whatever stresses Christmas, Hanukkah or the winter solstice bring you, worrying about that January credit card bill doesn’t have to be one of them.
Holiday Spending
We all know the holidays aren’t really about buying things. They’re about spending time with family and friends, showing appreciation for the people in your life and maybe even giving back to your community.
But if you can do all that and get a new video game console, that’s even better, right?
Whether you want to see your child’s eyes light up when they open their presents, you have the perfect gift in mind for a coworker or you just want to treat yourself, the holidays are typically more enjoyable when you buy things.
But just how much should you buy? The National Retail Foundation estimates the average American spends over $900 on holiday-related purchases. That’s only an average, of course; many will spend much less and some will spend much, much more. The right budget for your holiday spending depends on your circumstances. But what can you do to help keep your spending within a healthy range?
Tips To Avoid Holiday Overspending
Here are some steps you can take to avoid overspending in winter and having to bargain shop until spring:
Make a Budget. A Realistic Budget
It’s best not to overcomplicate things when budgeting for personal spending. Try to figure out your budget early — let’s say shortly after you take down the Halloween decorations — and determine what you can comfortably spend. This is your income minus your expenses and minus what you need to save for long-term goals. If your overall saving goal is 15% of your income, maybe you can save more money earlier in the year and spend a bit more in November and December.
Make a List and Check It Twice
Sticking to a budget is a nice idea. But then it’s December 21, you’ve spent all but $17 of your budget and you haven’t got a gift for your wife yet. The temptation to overspend in that scenario is overwhelming, and, at that point, it’s perhaps a wise decision.
But to avoid that scenario entirely, make a list of all the gifts you want to buy people. This means you’ll be less tempted to make impulsive purchases.
Cash in on Rewards
If you participate in a business’s rewards programs, the end of the year is a great time to redeem them.
Compare Prices
It’s a bit more work, but it’s worth checking which outlets have the best prices for the items you want to purchase. Maybe you can get something cheaper online, or maybe you can save by going to the store and skipping the shipping fees.
Track Your Spending
By using a banking app, you can easily track how much you’ve spent. This will help you stay within your budget.
Vectra Bank has its own app you can use to track what you’ve spent. We also have financial professionals available to discuss your financial goals. Contact a Vectra Bank professional to learn more.
