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How to Budget During the Holidays
November 9, 2021
Spending is synonymous with the holiday season and it can be tempting to throw your budget out the window when finding the best holiday shopping deals. However, there are simple steps you can take to manage your holiday spending and start 2022 off financially strong.
Stick to a Holiday Budget. Set a limit on your holiday spending and stick to it! With holiday sales and promotions, it can be easy to go spend more than you initially anticipated. When you create a budget, make a corresponding list of items so that you have a plan you are staying committed to. Then, you can research holiday deals, sales, and coupons to help you save money while shopping for gifts. The thing you don't want to do is to start off the new year in debt or stressed from overspending.
Review Your Budget. The end of the year is a great time to review your spending and cut back on expenses. Are there subscriptions you don’t use? Could you cut back on a few takeout dinners or impulse purchases each month? Look at where you overspent this year and make those areas where you can save in the future. It’s also important to note any financial changes that happened in recent months – did your income change, did your debt increase/decrease, are your bills the same? Find more information about budgeting, including worksheets and a free e-course with Centier's Financial Education Series, Centier To You.
Plan to Pay Off Debt. Even if you can’t pay down debt this year, commit to paying off a little more than you are currently. An extra $25 or $50 each month can help you become debt-free sooner than later. There are two methods people often use to help get rid of debt – the avalanche method and the snowball method. With the avalanche method, you work on paying off your highest rate loan first. With the snowball method, you start by paying off your smallest debts first. Centier To You has a free e-course dedicated to paying down debt here. See also: How to Save While Paying Down Debt.
Check Your Credit. Take a careful look at the details on your credit report to make sure there aren’t any errors. Catching any mistakes early is key to saving you from a major headache. Review your credit score and find out if there’s room for improvement. Find out more about your credit and where to review your current credit scores by clicking here.
Set Financial Goals. It can be motivating to set financial goals for yourself, and it will feel so good when you reach those goals! Make your goals attainable and make sure they don’t stretch you too thin, or else you’ll get frustrated and give up on them before you have a chance to succeed. Maybe your goal is to put an extra $100 per month into your savings, to pay off your credit card, or to build a strong retirement fund - no goal is too small to make a difference in your financial health.
Start taking these simple steps to set you up for a brighter financial future!