How to Stay Solvent Through the Holidays
Shopping for loved ones can be a meaningful way to express how much you care. Whether shopping locally or scrolling online while imagining your favorite faces lighting up can feel like a gift in itself. All too often, however, the desire to spend can outpace your account, adding unnecessary stress to the season. Here are some ways to stay in good financial shape during the holidays without sacrificing the spirit of the season.
Plan Ahead
One of the most effective ways to avoid overspending is to start out with a clear plan. Create a realistic approach you can live with, then stick to it no matter what. The holiday season can bring a lot of emotions with it, but when the reality of debt sinks in with the new year, you will have wished you stuck to your guns.
- Set a firm budget for the season, allowing a bit of margin for unexpected situations, such as a holiday meal or guest.
- Write out your gift list ahead of time, agreeing ahead of time with certain friends or extended family members that you’ll be cutting back. Also consider setting up a “Secret Santa” system in which people in a larger group draw names and focus on purchasing one special gift. Chances are, they will be relieved to have an “out” as well, especially given the financial challenges that have come with COVID this year.
- Don’t shop at the last minute! When you’re in a rush, the stress and desperation of the situation will undoubtedly cause you to spend more.
- While you’re at it, start planning for the next holiday season! Begin a savings plan for Christmas 2021 now. Even just a few dollars a week can really add up.
Leave Your Credit Card at Home
Remember the budget you set in step one? Take out that amount of cash from your bank, and spend only from that physical amount. When it’s gone, it’s gone. What about online shopping, when you need a credit card number to place your order? This is where a prepaid card dedicated to holiday spending can be a lifesaver. Like a debit card, the amount will count down as you spend, not add up, keeping you from debt.
Think Alternative Gifts
During a year when many people have felt lonely and isolated in their homes, your time and talent may be the best gift of all. Create crafts, write notes, or bake for the people you love. For people outside of your household, create special Zoom game nights or online brunches during which you can focus on enjoying one another’s company.
Reacquaint Yourself with the Basics
Getting your overall financial life, not just your holiday spending, in order can be the best gift you give yourself this year. First National Bank of Sycamore can help you get on track with checking, savings, credit scores, budgeting, and other tools to help you be successful for years to come.
Learn more budget-savvy tips and let First National Bank of Sycamore help you set yourself up for financial success this season.
