It’s the holiday season, which for many people means stressing about how they will pay for all the additional expenses or, worse yet, not thinking about what they are spending and being shocked when the huge credit card bills are cluttering their mailboxes in January. Because overspending and not planning for holiday spending are such big problems for so many, we decided to recycle a blog from a few years ago with updated facts about current consumer spending. The advice is still sound. We hope this article will help you, a friend, or a family member develop a plan for a stress-free holiday and encourage you to examine your financial picture and make any necessary changes to protect your life, family, and future.
Wishing you and yours a peaceful, joyful holiday surrounded by the people you love.
“By failing to plan, you are planning to fail” Benjamin Franklin
Holidays are a great time to gather with family, have fun with friends, and experience the joys of the season. Unfortunately for many, it is also a time for overspending, bad financial decisions, poor judgment, and stressing out about money. 60% of Americans are paycheck to paycheck, and nearly half of all consumers feel worse off financially than in 2022. Yet, according to a recent bank survey – shoppers say they expect to overspend and do not have a plan to pay off the added debt. In fact – a third of holiday shoppers are still carrying debt from last year’s holiday spending! If you make the minimum payment of $25 on a $1,000 debt at 18% interest, it will take until 2028 to pay it off! That is a lot of money unnecessarily going out of your pocket! Don’t let this be you – have a plan! Following the steps below, you can PLAN for stress-free holiday spending and start the new year without unplanned debt!
- Make a plan and stick to it!
Do you really need to buy a gift for everyone on your list? Maybe it’s time to stop buying presents for your neighbors or friends you only see once or twice a year. Is there something you can do that is more meaningful and economical? Make holiday treats instead, or have a potluck dinner and let everyone contribute.
- Set a budget.
Be realistic about what you can spend. For every dollar you spend for the holidays, trim a dollar from your everyday budget – skip eating out, pass on Starbucks, and bring your lunch; if you look closely, there are many ways to save your budget and have the money you want for gift-giving.
- Shop online.
Once you have your list, research bigger ticket items to know if the price you saw at Costco is a good deal. Online shopping (with a list) can also reduce impulse shopping.
- Pay with Cash.
When you use cash, you can only spend what you have. Using cash instead of cards is also another way to control spending on a whim.
- Plan ahead.
There are many great sales after the holidays, and you can often get deals you won’t see at any other time of the year. If your budget allows, buy when prices are the best, so you are ahead of the game before the next holiday season, birthday, or other gift-giving occasions guaranteed to pop up.
Having a plan will help you keep your holiday spending within your budget and allow you to start the New Year off stress-free! We can show you how to build a plan so that next holiday season, you will have the cash you need and not rely on high-interest credit cards. Call us today to learn more – we are here to help you put a strategy in place and reach your financial goals!
