If holiday eating is an obstacle course for your diet, holiday spending is a minefield for your budget. The folks at The SKG Team at Barnum Financial Group, led by Ben Soccodato and Chris Kampitsis, are back with their tips for a bountiful holiday that won”™t break the bank:
Tip 1: Use a cash-back reward card
Consider taking advantage of a high cash-back reward card to assist with your financial situation.”¯ Assuming, and only assuming, that you pay your balances off in full each month, you can build up these rewards to cover a large portion, if not all, of your holiday spending and travel budget.”¯This is a great way to keep these expenses from denting your budget significantly.”¯
Tip 2: Have a realistic budget
While we often want to go above and beyond with our gift giving, it is important to be realistic about our spending during the holidays. If your family members are buying you items that are out of your financial realm, do not try and compete with them. People understand budgeting and spending limitations. Avoid overspending and building up credit card debt or having to transfer from your savings account to purchase gifts. There are not going to be many happy holiday seasons left if you are ultimately too broke to buy anything.”¯ Whatever your budget ”“ stick to it.
Tip 3: Plan your spending in advance
Alternatively, it is important to set a holiday budget in advance.”¯While it may be too late in the game this year, make it a 2023 goal to plan your spending ahead of time. If you find yourself running low on funds this time of year, make sure you are accounting for holiday spending annually in advance.”¯ Building better spending habits throughout the year will help you avoid falling into a deficit when the holiday season rolls around.
Tip 4: Start shopping early
With supply-chain shortages still an issue, starting early can help ensure that your gifts will be available and delivered on time for the holidays. In addition to ensuring your gifts arrive in time, starting early also allows you to take your time, find the right gifts and track spending to make sure you are sticking within your budget. More importantly, spreading out shopping will also spread-out spending, so it doesn”™t all hit your bank account or credit card at once.
Tip 5: Consider a Secret Santa or gift exchange
Having a family or friends get-together? Consider doing a Secret Santa or gift exchange. Not only are they fun, but everyone leaves with a gift, and it allows you and your guests to purchase only one gift, rather than having to purchase gifts for everyone.
Tip 6: Give the gift of time
Regardless of whether you are short on cash this year or just want to avoid the chaos of holiday spending, giving the gift of time is invaluable. Host a holiday brunch and invite your close family and/or friends over to enjoy food and good company. The past few years have presented us with a multitude of challenges but have served as a reminder not to take little things for granted. There may be no better gift than the gift of time.
