Yes, it’s that time of the year again! The Christmas season is a time of joy, sharing, and celebration. But it can also be a financial hangover if you aren’t careful enough. So before you start spending your hard-earned cash on gifts, eggnog, and entertainment, take a moment to think about how to avoid a financial hangover this Christmas holiday season, because a little planning now can help you avoid a long-term financial hangover.
Here are a few tips I have put together to help you stay on track with your finances and avoid a financial hangover this Christmas season:
Give Yourself A Financial Check Up
Take stock of your finances and make a plan before you start spending money. Check your bank balance, credit card statements, and any outstanding bills that will fall due in the coming month. Doing this can help you to find out how much you can actually spend on Christmas gifts and entertainment, you may even find extra money you did notice before. And if you need to borrow money, shop around for the best deal on a loan.
Set a budget for every gift and entertainment
Set a budget and stick to it. You may have heard this before, but it’s worth repeating. The best way to avoid overspending during the Christmas season is by setting aside a specific amount of money for gifts, entertainment, and other expenses associated with the holidays. It can be tough when everyone else seems to be spending more than ever these days, but if you make an effort to stick within your budget, it will help ensure that you keep the financial hangover at bay.
Trim down your wish list
If you’re like most people, your Christmas list is probably pretty long by now. That’s OK; it’s just one way we celebrate the holidays! But if you want to keep your holiday spending under control this year, consider trimming back your wish list by 25% or more before buying anything from it (or at least hold off until after Christmas and check if you still want the purchase). Consider asking yourself the following questions for each gift on your wish list before you buy it:
Do I need it or do I want it?
How will it benefit me now and in the future?
Which of my need will be fulfilled by buying it?
Avoid using credit for Christmas shopping
If you have to use credit, make sure that you can fully pay it off before the end of the month to avoid those nasty credit card charges which can add up pretty quickly. Consider setting up an envelope system or using cash envelopes for shopping. This will help keep track of how much money is being spent. You can put cash in each envelope and then only use what’s inside at one time. If you end up with extra money in your “gifts” envelope, you can choose what to spend it on, put it back into your bank account for next Christmas, or put it towards your debts if you have any.
Takeaway: Avoid A Financial Hangover This Christmas.
As with many things in life, we can’t avoid Christmas spending entirely but we can definitely manage it. And it’s easy to see that with a little bit of planning you can take the sting out of it. All it takes is a bit of planning, restraint, and a little strategy, and you’ll be well on your way to keeping the Christmas spirit going into the New Year while avoiding a financial hangover.
Need Help? Book a FREE Financial Check Up and let me guide you into the process of making your Christmas stress-free and keep at bay the financial hangover this Christmas.
Want to know who is driving your financial decision this Christmas, head over to our FREE Money Type Quiz.
I wish for you my loyal readers to have the most joyous and magical Christmas ever with your family and friends.
