The holidays are one of the most joyful times of the year, as it involves sharing meals with family and friends, exchanging gifts, and watching nostalgic movies. So, getting caught up in the holiday spirit and spending more money than expected is easy. Overspending during the holidays can lead to financial setbacks, limiting your ability to pay for essentials and resulting in stress.
Although the festive season is meant to be a positive experience for all, in 2021, 61 percent of Americans dreaded the winter holidays due to spending, which caused loss of sleep, anxiety, and added debt. Fortunately, proper planning and budgeting can help you avoid financial setbacks and keep your spirits up during the holidays.
Assess Your Finances Ahead of Time
It is never too early to start planning for the holidays. Although plans can change and prices and vary, assessing your finances ahead of time can help you determine your holiday spending and create a reasonable budget.
To assess your finances accurately, take some time to ask yourself a few questions. How much money have you already put aside for the holidays? How much more do you expect to save from your upcoming paychecks? Do you already know what kind of expenses you will incur? Preparing in advance can reduce the risk of financial setbacks and allow you to spend wisely without stress.
Stick to Your Shopping List
It’s easy to get excited during your shopping spree and grab things you don’t need. But this can lead to unnecessary debt and financial setbacks in the future. After assessing your finances and creating a budget, make a list of all the things you need to purchase for the holidays. This may include gifts for friends and family, decorations, and food.
Creating a shopping list ahead of time can help you identify essential costs and differentiate them from unnecessary ones. If the list is too long, try to look for costs you can trim and stick to the list when you head shopping to maintain your budget and avoid overspending.
Apply for a Short-Term Loan
A short-term online installment loan allows you to borrow money during the holidays and return it at your convenience. This can be particularly helpful if you don’t have enough savings or disposable income to cover your holiday expenses. When you choose a reputable lender like GoDay, you can repay your loan in affordable fixed payments that fit your budget.
The last thing you want during the holidays is added stress from paperwork for loan applications. The key benefit of an online loan is that you can complete the entire application online within five minutes and get quick access to cash once approved.
Factor In Regular Expenses
When the holiday excitement kicks in, it’s not unusual for you to forget about your regular monthly expenses. However, you still have to cover the mortgage or rent, utilities, and childcare expenses. When creating a holiday budget, factor in regular bills and payments to get an accurate picture of your finances.
The pressure to spend the holidays in a ‘perfect’ manner can lead to stress, and the inability to meet those expectations can result in guilt. However, it’s important to remind yourself that the holidays are about spending time with your loved ones. You can prevent financial setbacks from getting in the way by following this guide to reduce spending-related stress.