This is the season for giving, which also means it is the season for spending. Without a plan, the activity of the holiday season can quickly impact your finances. Below are some suggestions as to how you can keep your finances on track this time of year.
It is important to create a budget and stick to it. When creating a budget, the first thing you should look at is how much income is available. This is the amount of cash you have left over after all of the monthly bills are paid, in addition to any funds that you may have previously saved for the holiday season. Next you will want to look at all of the expenses that will be incurred. Remember that this is not limited to just gifts you will purchase for friends and family. It should also include the other expenses like travel, food, wrapping paper, decorations, holiday parties, etc. Once you have made your list, allocate the available income to each category accordingly.
Once the budget has been created, it is important to stick to it to ensure no overspending. You can do this by tracking all purchases as they are made. Keep a running list of the total available to spend, less any purchases as they are made. That way you know where you are with your budget at any given time. Avoid doing your holiday shopping and waiting until you are home to calculate your total spending. By that time it may be too late to keep yourself from overspending.
You may also wish to consider using a cash system. If you have your budgeted amount available in cash, you will have an idea as to where you are with your budget at any given time. Using a cash system may also keep you from relying on credit cards during the holidays. Having access to credit can cause you to spend impulsively and purchase things that were not on your list. It can be easy to get wrapped up in the holiday season and spend because it feels good in the moment, but the bill will come eventually.
You may find that you have overspent during the holiday season, or perhaps you are struggling to feel festive because you are already in debt. Remember that there are solutions available to provide you with financial relief. A Licensed Insolvency Trustee will provide you with a free consultation to look at your situation, discuss your options, and help you find an optimal solution.
BDO First Call Debt Solutions 147-15th Street East Prince Albert S6V 1G1
Phone: (306) 765-3328 or 1-855-220-1705
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