The holiday music and decor flooding popular retail stores are the first indications that the holiday season is among us! We all know how easy it is to overspend during the holidays. Between trips to visit family and friends and purchasing gifts, the holidays alone are enough to put a strain on your wallet.
Taking into account inflation, recession concerns, and other factors that the Canadian economy is experiencing, it is very normal to feel concerned about your finances going into the holiday season this year.
If anything, November is the perfect time to implement a money-saving strategy to help you save money during the holiday season!
That is why we are here to equip you with a few money-saving tips to help you save money during the holidays.
Here are 5 tips to help you make the most of the holidays without breaking your wallet.
1. Set a Holiday Budget
As tempting as it is to splurge on your loved ones with gifts without a second thought during the holiday season, excessive spending can in turn jeopardize larger financial goals.
That is why we recommend taking a look at your current financial situation and creating a budget based on your finances. A realistic holiday budget will help you to spend what you are comfortable spending while keeping you on track.
2. Make Note of Additional Expenses
When creating a holiday budget, many often factor in the big expenses such as gifts and travel expenses while leaving out smaller expenses such as wrapping paper, decorations, teacher gifts, and more.
It may seem small, but these additional expenses add up over time and should be factored into your budget accordingly. With these factors in mind, it can help you to build a realistic budget and avoid overspending.
3. Stay Organized
This time of year has a tendency to be a rather stressful time, which can result in many of us leaning on the support of additional resources for the sake of convenience. It can be easy to spend a few dollars on getting a gift professionally wrapped when you are in a time crunch, or picking up takeout when you do not have time to make dinner. All of this is normal, and only further instills the need to be organized during the holiday season.
Rather than buying takeout, consider meal prepping for the week. Rather than splurging on a gift that you saw while you were window shopping, consider mapping out your gifts ahead of time to keep you on track (and in your budget!).
A little change goes a long way, and you will certainly thank yourself later!
4. Set Expectations
Whether with yourself or with those around you, it is important to set expectations when it comes to the holiday season and purchasing gifts.
We all have the tendency to want to spoil our friends and family during the holidays, however, there is nothing wrong with discussing your gift expectations with them ahead of time.
Let them know your gift intentions, and you will be surprised how much of a relief this small strategy will be during the holidays and even following when you look at your finances in the New Year!
5. Track Your Spending (Regularly!)
Your budget will play a vital role in your holiday spending, however, it is not enough to set a budget without regularly checking up on it.
Depending on whether you use a digital budget to track your expenses such as an Excel spreadsheet or an app, checking up on it regularly will help you to stay on track and within your limits, all while avoiding any shock you may have following the holidays.
Welcome the Holidays Confidently with Arise Mortgage
The holiday season should not be one that is embraced with financial fear.
Whether you are saving to purchase a home in the New Year or want to cut back on your spending to afford a mortgage, Arise Mortgage is here to provide you with tips to get you on track to financial freedom.
Enter the holidays stress-free with us and book a call to chat with us today!