It’s the holiday season, and you are likely to get swept up in a flurry of activities, some of which might lead to overspending. But there are ways to enjoy the season without maxing out your budget. Here are tips to help you control your spending during the holidays.
- HAVE A BUDGET: The first and most crucial step is to create a budget. Make a list of all the expenses you’ll most likely incur. Whether you’re spending money on gifts, dining out, or socializing with friends, set a budget and stick to it. If you plan ahead of time and have a savings account to tap into, that’s excellent; if you don’t, you’ll have to cut back on your expenditures.
- TRACK YOUR EXPENSES: Having a budget is just half the battle; you must follow up to ensure that you keep to your budget. Receipts can be kept to help you keep track of your expenses.
- BE WARY OF MARKETING GIMMICKS: Every merchant out there is trying to entice you to come in and buy something. However, be sure you acquire what you require rather than what you desire. Take, for example, a retailer that advertises “Buy two, get one free” on a pair of trousers when you know you don’t need two, let alone three pairs. It is preferable to simply purchase one and move on rather than exceeding your initial budget due to a tempting offer.
- USE CASH INSTEAD OF YOUR CARD: When you use a credit card, you are more likely to overspend since you believe there is enough money in your account to cover your bills. If you go to a store with cash, on the other hand, you know you’ll get exactly what you want.
- TAKE ADVANTAGES OF DISCOUNTS: One of the nice things about the holiday season is that shops give discounts or drop prices on their products. Take advantage of these savings opportunities! Purchase what you would have gotten for a higher price at a lower cost. However, don’t choose a lower-quality product just because it’s less expensive.
- AUTOMATE YOUR SAVINGS:Overspending occurs when we don’t stick to a budget or spending plan. A sensible way to overcome this is to automate your saving funds into a locked savings plan. This way, your savings is automatically transferred from your expenses account into a savings account which make it less tempting to dipp into money that is purposed for other essential things.
The HerVest app makes it convenient to save towards your short, mid and long term goals while enjoying competitive interest for doing so. Our community of women are available to support you with tailored advice, mentoring sessions, community workshops and financial literacy resources to stay accountable and in control of your money.
What other tips would you recommend. Let me know in the comments below!
Dara from HerVest
