The holiday season is big business for retail stores, holiday destinations, toys, and gift shops. During this period, people spend a lot to please their family and friends, without budgeting. The National Retail Federation estimates that holiday retail sales will top $730.7 billion this holiday season.
Average consumer spending this holiday season is expected to hit $1,047.83. The bulk of this money will go to gifts, while the remainder will purchase non-gift items. Some will spend more to travel to holiday destinations. With this in mind, creating the right budget will help you control your spending this season.
How do you budget for the holiday season?
During the holiday season, almost everyone is trying to show appreciation for work done, and milestones achieved in that year. People want to treat their family and friends. This sudden increase in expenditures will leave a dent in finances when January comes around.
Instead of lavish spending when having fun, try to half your spending. This will ensure that you will have fun, but you will also save money.
Rethink Your Gift List
This a season where everyone feels charitable and willing to spend money at every turn. Gifts become a priority, and the spending spree continues.
However, take a moment and come up with a gift list for your friends and family. Now go over every gift and weigh if it’s necessary or not. You might feel obligated to buy gifts, but it’s also fine if you don’t. Stick to your gift list and avoid the last-minute rush.
Set Your Limits
Budget for everything that you’ll spend on during the holiday season. For example, you will obviously buy gifts, thus set a dollar limit for each gift. Try the same approach with clothes, food, and adventures. Take advantage of sales, bargains, and coupons to further reduce your expenditure.
Begin saving for your holidays as early as January of each year. Set aside a small percentage to your holiday account, and by December, you’ll be enjoying your savings, plus interest. Also, plan your holiday spending and reduce overreliance on take-outs or foods that aren’t homemade.
Choose Cheaper Traditions
The holiday season in itself is a tradition that’s observed worldwide. Some families have lavish traditions that involve flying to different destinations every holiday season. Others throw lavish parties for their loved ones, and give out expensive gifts.
The traditions are arguably the most memorable parts of the holiday season. They don’t always have to be expensive, as you can choose a cheaper, but more memorable tradition.
Don’t go all out to please your loved ones, only to feel the effects of your extravagance in January. Try to budget, spend less, enjoy, and make more memories.
Edward L. Taylor Jr currently serves as a Clayton County Business Banker with Heritage Bank. With over 15 years of experience in the banking industry, Ed can provide you with the best business products and services to serve your needs now and well into the future.
Vice President Business Banker • 770-515-7032 • [email protected]