How to Save Money for the Holidays?
Holidays are a time to celebrate, and spending a lot of money on them is easy. But don’t worry! You can still save up some cash for these festivities again next year. In today’s article, you’ll learn some financial tips for the holidays using some simple strategies that we’ve found work best:
Start saving now
You’re probably already saving money—you don’t realize it. So, for example, you might have a savings account or put aside a few dollars every time you get paid. If so, that’s great! So the next step is to make your savings automatic.
Set up an automatic transfer on the first of each month from your checking account into a separate saving account for whatever goal you have in mind. Then watch as these small deposits add up over time and become one big pile of money by the time December rolls around.
Pay down debt
The best way to save money for the holidays is to pay down your debt.
Debt is expensive, and it can be a drag on your finances. It’s also a mental burden: if you’re worried about paying off debt, chances are that you aren’t spending as much time enjoying life as you would if you didn’t have any obligations hanging over your head. But, of course, having too much debt can even become a downward financial spiral.
So beware of this menace!
Decide how much you want to spend
You probably have a general idea of how much you want to spend on gifts, travel, food, and decorations. The trickier part is gifting for your pets—and maybe even yourself! If you have a pet that’s easygoing with presents, then it’s okay to splurge a little more than usual. But if they’re more particular about their toys and treats, then maybe stick with your normal routine this year.
Create a budget for gifts and travel
- To create a budget, write down all the money you have to spend on holiday gifts and travel.
- Once you’ve written it down, prioritize each item in order of importance.
- Then, divide your total amount of money by the number of items on your list. This will give you an average price per item you need to stay within if possible.
- If there is leftover money at the end of the month, put some aside for next year or save it in case something unexpected happens during this holiday season (like the flu).
To manage your finances, experts at Intuit suggest, “Is your budget looking tight? Consider turning your hobby into a paying side hustle to generate some extra income. If you’ve had your holiday decorations up since November 1st, consider offering your decorating services to your neighbors.”
Think about ways to cut back that don’t hurt your budget or your holiday spirit
So, you’ve decided that you’re going to cut back. Maybe it’s just this year, or maybe it’s something permanent. Either way, one of the first things to consider is how much time and energy you want to spend on this process. You might not be able to change everything in your life right away—that would be pretty unrealistic! But some things’ll work better than others.
The holidays are a time for celebration and giving, but it doesn’t have to break your budget. Planning and making smart choices allow you to enjoy your holiday season without breaking the bank. The key is to start saving now, to know how to visit Intuit, and find ways to cut back that don’t hurt your family’s holiday spirit.
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