Even if you have already shopped for the holidays, it is still not too late to do some financial planning to ensure that you do not overspend. As the 360 degrees of Financial Literacy website reminds readers, “The most helpful step in planning your holiday shopping adventures it so establish a realistic budget based on your current cash flow and financial obligations.”
It is possible to enjoy the holidays with friends and family without overdoing it and without undoing the sound financial plans you and your Fee-Only financial advisor have put in place.
Budgeting Your Money
You can set a budget for how much you can sensibly spend this holiday season and when you do this you need to keep the entire holiday season in mind. Many people set a budget for buying gifts and neglect to consider how much they will spend on other endeavors, such as cookie baking, supplies for holiday crafts, holiday meals, and travel. When you consider all that you are likely to spend outside of your normal expenses, this can help you to stay on track.
Not only can you set a budget for the dollar amount you want to spend, you can also limit the number of people on your gift-buying list. Generosity has its place, but if you give until it hurts you could seriously impair your own financial well-being.
Budgeting Your Time
If you spend the holiday season in a whirlwind of parties and gatherings, and enjoy it, great. However, if you find that you are tired because you go to so many outings, consider spending a few nights relaxing at home. The holiday season can be taxing on the wallet and the mind. If you exhaust yourself, you will be less efficient at work and at home. Fatigue can effect your decision making skills, making it more likely that you will be tempted to spend money needlessly.