5 Budget Reminders for the Holidays


5 Budget Reminders for the Holidays

It’s the most magical time of the year! Hot chocolate, wreaths, candy canes, lights, Santa Claus, and a whole bunch of presents under the tree. It’s no secret that the holidays are the season when people tend to overspend the most. From Black Friday deals to the last minute rush to get all the presents under the tree, we are about to be bombarded with the message that we need to buy, buy, buy.

So before you check your Christmas list twice, make sure you take a look at our list of five simple budget reminders for the holidays:

1. Make a list. Decide in advance who you want to buy gifts for. If you need, take a look at what you purchased last year. Then determine what makes sense for your family to spend this year.

You should always make sure your bills like rent, groceries, utilities, etc. are covered, and purchase presents with what you have leftover or have saved up for that purpose. If you want to plan ahead for next year, set an amount to put aside each month so you can save a smaller amount all year to spend on Christmas gifts.

2. Categorize your list. You aren’t going to get your significant other the same kind of gift as your neighbor! Take the time to categorize people on your list by what type of gift you are going to get.

You can also categorize your list by how much you plan to spend. If you want to give gifts to your neighbors, stocking stuffers, and other small presents, plan what type of gift you’re planning and the amount you’d like to spend. Also plan what type of gifts and amount you’d like to spend for your spouse, children, and family members.

3. Set an amount you are going to spend and stick to it! It can make you feel like aGrinch or that you are crushing the Christmas spirit, but with all the pressure to spend money this time of year, it’s important to set in advance how much you can afford to spend on gifts.

Once you’ve set that amount, track how much you have spent and stop once you’ve reached that amount. If you’ve bought a gift for everyone on your list and you have extra, then you can let yourself spread extra cheer!

4. Be careful with credit cards. If you have a plan to pay off your card quickly and you already have the money to spend, using a credit card isn’t bad. In fact, there are a lot of instances where you can earn rewards by using your credit card.

However, you need to be careful when you are tempted to spend over the amount you’ve set or when you don’t have a plan to pay off the credit card bill. You can quickly snowball into overspending this holiday season and end up spending far more in interest than you actually saved by taking advantage of a “good deal” that didn’t fit in your budget.

5. Remember what Christmas is all about. It’s easy to get swept up in the gift-giving portion of Christmas that we often forget the purpose of the holidays is to celebrate the birth of Christ and to practice generosity. Generosity isn’t measured in the number of gifts we give, but in helping others less fortunate than ourselves.

Take time to consider if instead of going overboard on gifts, your family makes a new tradition of volunteering together or donating a portion of what you would normally spend on gifts to a charity.

We know how difficult it can feel to set a budget for your holiday spending. We hope that these tips help you plan ahead and put presents under the tree this year. You can have a healthy dose of Christmas spirit and still stick to your budget. We believe in you!

From our family at 210 Financial to yours, have a happy holidays and a Merry Christmas!

Content prepared by Austin Savage & Co.

Neither the firm nor its agents or representatives may give tax or legal advice. Austin Savage & Co. is not affiliated with 210 Financial or AEWM. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. 210 Financial is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and 210 Financial are not affiliated companies. 01124014 – 11/21

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