How to Rearrange Your Budget After the Holidays
Here are some tips to help you keep your spending in check during the holiday season. You can set a spending limit and create a de facto holiday savings account to keep you from overspending. In addition, shopping strategically and avoiding after-holiday sales can also help you save money. Once you've set a limit on your holiday spending, you can begin making a list of your needs.
Setting a Spending Limit
After the holidays, you will probably have more disposable income than ever before. Depending on how much you spend during the holiday season, this could mean purchasing gifts, decorations, or festive food and drinks. But there is a way to avoid going over your limit: Set a spending limit before you start shopping and stick to it! It will save you from racking up a huge credit card bill at the end of January!
Once you have a budget, assign money to the various categories of gifts and expenses. Then, allocate a dollar amount for each one, and stick to it! Once you've determined your spending limit, divide it up into percentages. For instance, spend 50% of your budget on gifts for family members, 25% on gifts for friends, and so on. This way, you'll avoid overspending on gifts or other necessities.
After the holidays, consider your spending plan for the next month. If you didn't set a holiday budget for yourself, consider other sources of money. You might have some year-end bonuses or unused money in your savings account. If you don't have a dedicated holiday budget, make sure to set aside a monthly budget for your household, including both holiday spending and regular expenses. Then, work within the budget to fit in the holiday expenses.
While it's not easy to talk about money with a significant other, setting a limit after the holidays can help you and your partner stay on track. A recent study showed that couples who agreed to set spending limits after the holidays were happier with their relationship than those who didn't. Those who didn't set limits after the holidays were twice as likely to wish their spouse had spent more money on gifts for them!
After the holidays, it's important to remember that we all have to pay for things we don't really need. But the holidays aren't the only time when we spend more money than we should. In fact, nearly a third of Americans spend more money on themselves than they do on their spouse. While this is understandable, it doesn't mean that we shouldn't spend more money than we can afford.
Creating a De Facto Holiday Savings Account
While you may not want to cut out all treats, cutting out the treats you enjoy can save you up to $250 per year. Instead of buying fresh trees for the holidays, try using reusable ones. While you might have to sacrifice some luxuries and treats, it will give you a financial safety net to help rearrange your budget after the holidays. To start putting aside some money for holiday expenses, divide the money you spend each month into envelopes and label them with your budget categories. Only spend from the envelopes that are labeled with your budget categories.
Using an automated tool to track your spending will help you save money for the holidays. Some programs even round up your change and put it in separate accounts or rewards. Using an automated tool to track your spending will help you save money each month. You can also push your savings into a checking account so that you can spend the money that you have available. The money you save will go a long way in making your holiday season a success.
Using a credit card to pay for holiday gifts is convenient, but it can increase your expenses. Instead of using a credit card for holiday purchases, try putting the excess amount you have in a de facto holiday savings account. If you can't afford the expenses from the holidays, invite your guests to a potluck instead of having a holiday get-together. This way, you can save money and avoid blowing your budget.
Before the holiday season arrives, start saving for the holidays. Look for deals and track major sales to make sure you have enough money to cover your holiday expenses. Also, take advantage of side jobs or seasonal jobs. You may even use credit card rewards to cover your holiday expenses. For example, if you have a cash-back credit card, you can redeem those statement credits for gift cards.
Getting a large gift list for a holiday party? You can score deals on non-priority items by shopping strategically. While Black Friday sales may be a great time to save, don't assume that every item on sale is a good deal. Compare prices using price comparison apps like ShopSavvy to make sure you are getting the best possible price. If you can't get all of your items on your list on the Black Friday sales, use a rewards credit card or cash-back credit card to get the best possible deals.
Many older consumers prefer to do all their holiday shopping at once. But that's rarely a wise strategy, since holiday deals come at scattered times. Be prepared for sales and make a list of "deal" days advertised by retailers. By identifying "deal" days, you can avoid overspending and building up debt. This will ensure that you can buy more presents and spend less money. The more you plan ahead, the better, because you'll be able to choose the best gifts for your loved ones.
Stick to your budget and you will see results after the holidays. You can spend less money on things you don't need and still have some leftover money for the new year. You can even buy a new wardrobe for the holidays, which means less spending on clothing. Remember, it's not just about clothes anymore. Also, try not to go overboard with your gift purchases. It's easy to get distracted by a sale and forget that you've bought gifts you don't need.
Avoiding After-Holiday Sales
It's easy to get tempted by after-holiday sales, which often seem too good to be true. But unnecessary purchases only push the goal of debt reduction further away. Instead, resist the urge to ignore past due bills. Missed payments damage credit and increase interest costs, so try to stay on top of all bills. If you're determined to stick to your budget, you'll see results.