The holiday season is around the corner and while it is a time for reflection and to enjoy the company of our loved ones, it is also the season of gifts, big feasts and pretty home decor. These small things can add up very quickly leaving you sad and broke. So how do you best prepare to have a successful holiday and avoid drowning in debt? Well, let’s follow these four ways to avoid financial stress during the holidays.
1) Create A Budget And Stick To It
How much do you want CAN YOU spend for holiday season? Just like you do (or should do if you aren’t) for your household, creating a budget is the most basic necessity to avoid financial stress. It is so easy to do impulsive shopping with all retail store windows displaying their best products. Create a realistic budget and don’t miss a thing! Yes, that favourite bottle of wine you will bring to your in-laws or that cute Christmas Wreath for your front door- all must be included.
2) Don’t Fall For The “Deal”
Haven’t you noticed how there is always an “amazing deal” that you must take advantage of during the holiday season? Don’t fall for that, please. I worked in retail (Hello, Best Buy!) and let me tell you, you will find much better deals in January when consumers are staying away from stores trying to pay back their credit card bills. Retail stores are desperate for sales. Too much supply to little demand. There is also an incredible amount of returned items that we call “open box” and you get at least an additional 15% discount because of it (please thank me later!).
3) Do Fall for the “Deal”
Ok, say what!!! Yes, you read this correctly. I told you NOT to fall for the deal. That is if we are talking about impulsive shopping. After you have created a budget and you know how many gifts you should be getting and to whom- it is time to get savy on the shopping. Keep your eyes open for a deal on that special item you want to get your loved ones. Start early!
4) Start Saving Early
Another no brainer that most people don’t do. It is too easy to use a credit card and play the catch up game later. But with interest rates piling up and your paychecks not getting bigger (unless a promotion is coming, then congrats girl!), you are certainly setting yourself up for failure. Start saving early. Perhaps you should’ve started January 1st that year. I don’t know. This one is up to you according to your budget and salary. But pick a time of the year where you decide to increase your automatic savings. If you aren’t using that system, then you should start. You can do as little as $40 bi-weekly and at the end of the year, you will have over a thousand dollars saved. (side note: I worked at ING Bank now known as Tangerine. Thanks for the tips Tangerine!)
Now that you read (and already started using them right?) these four ways to avoid financial stress during the holidays, enjoy and cherish EVERY minute with your loved ones. Put the electronics away and be thankful for another year.
If you are hosting this holiday, do not forget to check out our 5 Cookbooks Worth Revisiting to help you prepare an amazing feast for your guests.
