As the holiday season approaches, it can be easy to get caught up in the excitement and overextend yourself financially. However, entering the new year with debts can have lasting negative effects on your financial health. That’s why it’s important to manage your finances smartly during the holiday season and avoid overspending.
We all know that Filipinos love the Christmas holidays, and that’s why we coin September as the first month of the longest-lasting holiday in the Philippines. This is the perfect time to gather with friends and family to celebrate the fruitful year everyone has experienced. What better way to show appreciation to the people around you than giving them gifts or having a get-together?
Keep in mind, however, that this festivity should never be a burden to you. It is important to manage your finances to avoid entering the new year with debts. In this article, we will give you some tips on how you can avoid overspending during the holidays.
#1: Anticipate Your Budget Early
Don’t spend your bonuses in one go. To make sure that spending won’t take too much of a toll on you, make sure to anticipate your budget as early as possible. List down what kind of expenses you’ll make. Then, compute how much you need to set aside per month to fill this expense bucket. When drafting this, always create a holiday spending limit so it won’t burden you too much.
#2: Be Choiceful on Your Gift-Giving Tradition
If your gift list exceeds 10 people, then you might have to revisit this again. Don’t give yourself the responsibility to please everyone you get to interact with. Start cutting it and provide presents to those you have impacted your life for that particular year.
#3: Set Penalties Once You Overspend
At times like this that you need strong penalties to avoid overspending. With this, it’s a creative approach to come up with your own consequences once you go over your budget. This is even better if you do it with a friend to give you more accountability. For instance, you can set a pact to do extra chores or treat that particular friend after exceeding the budget.
#4: Be Resourceful With Your Gifts
You don’t need extravagant gifts to show your appreciation to a person. Believe it or not, your friends and family would appreciate personalized gifts more than expensive ones. Don’t be intimated by trendy items that you see when you pass by the stores in the mall. Instead, sit back and think about the likes and hobbies of that particular person. For example, if your friend loves to bake then better to give her a baking tool or a recipe book for less than P300 than giving her a dress that costs P1,000.
Another route to take is to add a personal touch to your presents. If you love knitting, then you can create a personalized sweater for your family and friends. Only time and a small amount of money will be needed from you.
#5: Shop as Early as Possible
Filipinos have this tendency to do last-minute shopping. There are various advantages to shopping early. First of all, you don’t have to worry that the item that you’re eyeing will be out of stock. Second, you can buy your items at its original price and you won’t have to worry about prices skyrocketing with increased demand. Lastly, your shopping will be more peaceful because you don’t have to get into the large crowd in Divisoria just to purchase your gifts.
#6: Track Your Expenses
In number one, we have mentioned that you have to be more wary of your budget at the end of the day. As a followthrough, make sure that you also actively monitor your spending during this time. There are various applications online that you can utilize so it won’t be difficult for you. Make sure to write down all your expenses related to the holiday season so you can make your adjustments as early as possible.
#7: Explore the Online World
If your items are not too technical or related to size, then better to shop your fights online. There are discount counterparts that go with it and provide convenience as much as possible. It also cuts down your expenses with all the deals that go with it and you don’t have to pay for gas to commute going the mall.
#8: Declutter for Additional Income and Options
If you want to lessen the burden of holiday spending, then add more income-generating efforts during this time. As you enter the new year, make sure to fix the clutter in your house and start anew. You may sell these things at a garage sale but it can also be used as an alternative gift if deemed fit. Just make sure that it’s not that worn out. You may also opt to repurpose this item to make it more personalized.
It is during the holidays that you would feel the need to let go of all the inhibitions. However, this should never be an excuse for you to overspend and empty those life savings. Make this holiday the best ever with the most efficient ways of spending!
