Budgeting for the Holidays: How Not to Overspend During the Holidays #Budget
The holidays are upon us! It’s the most wonderful time of year. But spending too much money to spread holiday cheer is far from wonderful. Oftentimes, the ‘season of giving’ means next season will be dedicated to paying off credit cards with high interest, or worse yet, late fees. Try something new this year; give yourself a gift by staying on budget.
Read on to learn how not to overspend during the holidays.
5 Tips About Budgeting for The Holidays
1. Make a Plan.
Keep your normal monthly spending in mind when establishing your holiday budget. Things like rent or mortgage, utilities and food costs, among other monthly payments, don’t go away during the holiday season. Creating a budget that fits those parameters will benefit you in the months to come.
2. Make a List.
If you’re asking yourself, “How can I spend less during the holidays?” start with making a list just like Santa. Compile the names of individuals for whom you would like to buy gifts. Then think of a few gift ideas and set a price limit, which will help narrow down those gift ideas. Creating a list will also save you from the hassle and panic of last-second shopping.
Be sure to break the list down by who you absolutely want to buy a gift and those who are optional. After you select gifts for those who are a must, you can determine if you have money left over for anyone else.
3. Start early.
Unlike Santa, don’t wait until the night before to make all of your holiday purchases. After making your list, keep an eye out for deals. Don’t always jump on the first one you see though. Oftentimes, other locations may have a better deal on similar products. Some retailers will even price match.
Starting early and searching for deals can help you save money, and stay under that gift spending limit. This is a great approach when budgeting for the holidays.
4. Set boundaries.
Credit and debit cards are extremely convenient, but be careful when shopping online. Sometimes it is easy to fall into a rabbit hole (or chimney if you’re in the holiday spirit) of gift purchases. We’ve all done it. One purchase leads to another, which leads to another and so on, until you have more gifts than people on your shopping list. Before shopping online, set boundaries and goals. Know what you have in mind before going online to purchase and keep your holiday budget in mind when selecting gifts.
5. Keep it simple.
Let’s face it, sometimes, only we know what we really want. Why would somebody on your list be any different? Gift cards are simple, quick and many times make the best all-around gift. Purchasing an all-purpose gift card, such as a Visa® gift card from Mid Penn Bank, not only makes it easy to stay under budget, but it avoids the awkward moment of delivering the unwanted gift. Plus, it’s easy to stick to your holiday budget when you’re able to divide your budget by the number of gift cards you need to purchase.
Mid Penn Bank Can Help You With Your Holiday Spending
Whether you want to open a holiday club savings account or purchase a Visa® gift card, Mid Penn Bank can help. We’re happy to answer any questions you have about saving money, making a budget or choosing the account that will work for you. Contact us today to learn more.
The material on this site was created for educational purposes. It is not intended to be and should not be treated as legal, tax, investment, accounting, or other professional advice.
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