The festive season is just around the corner, and for many of us, we're able to travel and see our family for the first time in months - even years, due to Covid-19. This season is all about spending time with family and friends, and we’re probably all taking advantage of some time off. But don’t forget, you still need to be considering how you manage your finances, especially at this time of year.
We’re just as excited as you are for the holiday season, but it still needs to fit your budget. This will allow you to start the new year in a financially strong position and helps to take the pressure off your daily money decisions, meaning you can really enjoy spending time with your loved ones, without any stress hanging over you. To help you out with your holiday season spending, here are three budgeting tips to take with you while you plan your December.
1) Plan in advance
If you plan to go shopping, or if you’re thinking of a trip, this tip is for you. If you already know what you're planning to buy, make a list, and have a look online to see what brands are offering deals.
To begin with, you could start by creating a new savings pot within your budget for holiday shopping or for your vacation. Black Friday sales (online and offline) are around the corner, which could help save a few quid. There are plenty of websites like Honey or Brandalley.com which could help you get great coupons or deals in turn reducing the overall costs.
Pro-tip - You could also sell your old clothes on websites like Vinted.com, to make some extra money and to help create a more sustainable environment instead of disposing of clothes.
If you’re planning a trip, make sure to book your tickets in advance to avoid the high demand surge!
2) Set a minimum and maximum threshold
Spending thresholds help establish a cap in spending decisions. Often, this has to be developed subconsciously. Think about it: when you find an item you like, you see how much it costs and then make a decision whether it fits your budget.
Setting a minimum and maximum threshold is important because setting yourself a maximum threshold reinforces that you shouldn't exceed the budget point. It also helps reduce the stress and guilt of spending your hard-earned cash! We deserve some pampering, right?
3) Invest the excess
Sometimes you might be surprised to learn that you have some cash left over after you’ve finished shopping or paying for your vacation. What would you usually do with any leftover cash? Why not tweet us your answers...
Looking to try something new with your money? Why not pick from one of the following...
1) Put it in an ISA
ISA stands for Individual Savings Account. The main difference between an ISA and any other savings account is that it offers tax-free interest payments, so you could get more for your money.
2)Put it towards a long-term saving goal
A long term saving goal could completely depend on your own financial journey and is typically a goal that needs a significant amount of money. For example, retirement fund, paying off a mortgage, starting a business, saving for a child's college tuition, etc.
3) Boost your emergency pot
An emergency fund is a pot/collection of money which is kept aside to cover the financial surprises life throws your way.
It’s always a good idea to build your emergency funds side by side. Even if you put a little every week or month, it helps to create a backing that can be used in time of need.
We hope these tips can help you make your holiday season a lot more budget-friendly and enjoyable!
Fancy creating your own financial plan in just 6 easy steps? Download our FREE financial plan checklist today.
Whether it’s already happened, or you’re still counting down the days, non-essential shops are beginning to open up around the wor...