Here’s How You Can Spend Smartly This Holiday Season
With the holiday season looming large, you are much likely to spend more and splurge on things that you may otherwise not! The holiday season is one of the times when you emotionally unwind. Some people travel to spend some time with their family and others who want to get a break from work.
Not to forget it is the time to giveaway gifts. Recent research found out over 57 percent of holiday shoppers plan to splurge to treat themselves. While it is completely natural to spend a little more on the holidays, it is always good to be wary of your budget. Otherwise, it will be tough to recover from a financial hangover.
Things may not seem easy. But here are some things to do not to overspend and stick to a specific financial plan or, should we say, a holiday budget, and stick to it.
Stay Honest To Yourself
While all you want to hear, go ahead and enjoy a little. After all, it’s the holiday season. However, you need to know that you need to be mindful of the entire exercise. Treating yourself ‘just a little’ may mean spending a lot on something you may not need later. So, ask yourself whether you truly need it? Or is it something that you are buying on a whim? You’ll have the answer if you wait for some time. The thing that appealed to you the first time may not happen after a point, and that will tell you you don’t need it so much in the first place.
Revise Your Budget
Now that you know, how much you are ready to spend yourself, take a good look at your budget. Can the expense fit into your budgetary scheme of things? If not, try and look up categories this month and to see where you can limit your spending so that you can make room for a holiday treat.
Not many can resist the temptation of not caving into instant gratification. So, when you look at your balance on your credit card to treat yourself, you may immediately be tempted. However, it is important to think twice before you do that. The buy now and pay later scheme can wreak havoc on your finances. It can also give you a lot of financial anxiety. Is a holiday treat worth it? Think again!
Credit card debt is toxic, but sometimes it is unavoidable. For instance, you have been working on a slow computer for ages, and this year at Christmas you decided to buy one. In such a situation, you can get yourself an o% APR credit card to avoid paying interest on the gist for yourself and plan a repayment plan to pay off the balance before the no-entry introductory period expires.
Earn Purchase Rewards
Try the rewards credit card to treat yourself. That way, you will continue to earn cash back, points, or miles and ensure you pay the card balance in full before the arrival of the due date.
Treat With Care
More often than not, Self-care involves spending a lot of money. While you know these expenses are part and parcel of your life. You can do it better in a more planned out way by creating a treat fund, a separate savings account where you will save money to go for occasional treats.
Or you can also Let rewards on your cashback credit cards be that fund. You can earn hundreds of dollars in cash back annually with cashback cards. That would be spending money guilt-free.
You see that American holiday shoppers entertain the idea of spending money on treating themselves in the holiday season. It is a given and true to a cross-section of generations, incomes, and locations. Treating yourself is fine as long as you do not overdo it. You do not spend money, but you need to avoid debt.
If you are honest about your spendings and learn how to plan for it. You will have a financially secure holiday and a stress-free one, too, considering you will get to indulge that too guilt-free. Now when is the last time you got to indulge in yourself without a sneaky feeling of guilt ruining your experience just a little? Now you know exactly how to avoid that.
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