Creating a holiday spending plan is essential to ensure the festive season remains joyous without causing financial strain. Here are some steps to help you develop a comprehensive financial plan for the holidays:
Set a Budget:
If you've been saving for the holidays with a secondary savings account like a Christmas Savings, you should already have a good idea of what your holiday budget might look like. To help you further along, you should:
- Determine how much you can realistically spend without compromising your financial stability.
- Break down your budget into categories like gifts, decorations, travel, and food.
List Your Expenses:
- Write down any potential expenses that you anticipate during the holidays.
- Include gifts for family and friends, holiday parties, and any special events you plan to attend.
Prioritize Your Spending:
- Decide which expenses are most important to you.
- If you find that your expenses exceed what you've budgeted for your holiday spending, cut back or consider cheaper options.
- Small meaningful gifts rather than extravagant ones can help to keep costs down.
Shop Smart:
- Take advantage of sales, discounts, and coupons to maximize your budget.
- Stick to your shopping list and compare prices online and in-store to determine where you'll get the best deal.
- Avoid impulse purchases and panic buys.
Track Your Spending:
- Keep a record of your expenditures throughout the holiday season.
- Use reputable budgeting apps or keep a spreadsheet to help monitor your budget and stay on track.
- Monitor your account(s) with Internet Banking or the the Members First mobile app.
Plan for After the Holidays:
- Consider how you will manage any debt incurred during the holiday season.
- Create a plan to pay off credit card balances promptly to avoid interest charges.
- Speak with a certified credit counselor or Members First Financial Fitness coach to help you map out a debt repayment plan that works for you.
Involve Family and Friends:
- Have an open and honest discussion about your spending plan with loved ones to set expectations.
- Consider organizing gift exchanges or Secret Santa arrangements to cut back on your list and reduce costs while still enjoying the spirit of giving.
Set Aside Emergency Funds:
- Budget for emergencies that may arise and set aside funds for unexpected expenses that may arise during the holidays.
- This will provide peace of mind, allowing you to enjoy the festivities without added stress, and help ensure you have the funds you need in case of emergency.
By following these steps, you can create a well-structured holiday spending plan that allows you to celebrate the season joyfully and maintain financial responsibility. Remember, the holidays are about connection and joy, not financial burdens.
Holiday Financing Options to Consider
Finance the cost of gifts, travel, and more during the holidays with one of these options from Members First.
Christmas/Holiday Loan Lifestyle Loan Borrow up to $2,000
All loans are subject to credit approval. APR= Annual Percentage Rate. The annual percentage rate you pay will be based on the number of months your loan is financed, the loan type and your credit history. The APR will be disclosed prior to an advance being made on a loan. Loan terms may vary based on value and type of collateral.
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