For many, the holidays are the best time of the year. Whether you like the colder weather, getting together with family or the exchanging of presents. Although it may be a great time of the year, it can be stressful financially. Did you develop a budget? Many of us exceeded our budget, and we've got some tips to help you recover and how to conquer your holiday budget in 2021.
One of the hardest parts of the holidays is that it can be hard to recognize that they are over. Your first mission should be to stop spending money on gifts and other unnecessary things. This can be hard because you have been actively shopping for two months. Resist those sale emails and the clearance racks and get started on your new financial goals, such as saving for a new home, your retirement, or paying off existing loans.
Next, it is critical to evaluate your financial situation. Were you under budget, over budget, or did you go into significant credit card debt? This will help you determine where to go next financially. Do you need to set up payment goals, calculate interest costs, or create new savings goals? Having financial goals can make it much easier to stay fiscally responsible.
With the beginning of the new year, many Americans have sums of money come into their possession, and whether it's their holiday bonus or their tax return, this money is not free. This money was hard-earned by working diligently throughout the year or taken off each paycheck in taxes. Do you have a plan for this money? Are you planning on buying a CD or putting it in your savings account? If you are still recovering from the holidays, this money can get you back on track with your financial goals. There is a tendency for these sums of money to start burning holes in pockets, resist the urge to spend it, and use it to help you achieve your goals.
If you are looking forward to the holidays a few months before they begin, start a plan. Developing a plan can make the holidays a less stressful time of the year for yourself and your wallet. When creating a financial plan for the holidays, factor in all your planned expenses, such as food costs, gifts, travel expenses, and save accordingly. If this is done effectively, you can purchase gifts in advance, limit the holiday stress, and develop long term financial goals.
We hope you had a wonderful holiday season, and we are so thankful for your membership. Let's continue our streak of great years since 1938.