The holiday season is a wonderful time, widely celebrated around the world. There are deals leading up to Black Friday, continuing until end of year at thousands of stores. This is typically the time of year where spending goes overboard, diets get forgotten, and times of struggle loom as the new year begins. I'm here to tell you: that doesn't have to be the case. A properly built budget can account for holidays, and when the time comes to buy all the gifts for friends and family, your bank account may not even notice. Financial planning is a year-round duty, and accounting for things like birthdays and Christmas are no exception.
Now each individual will have to set their own budget as far as these things go, and make sure to not overspend for the sake of other people's wishes, or the fame of being a big gift giver. Say your budget allows for an additional $100 to be tucked away each month for the gift budget, that would allow you to spend $1200 on presents this year, and each year thereafter. As income increases, and debt payments decrease, you may be able to add more each month. This method allows for a set amount each year, as well as not overextending yourself right before the first month of the new year. By planning ahead, there will no longer be the feeling of guilt or remorse. The famous saying "next year will be better" will be a thing of the past. Taking action now will yield fantastic results in the future, and your future self and family will thank you for it.
Let's go the other route; you may not need or want to spend a lot on christmas gifts, but instead take a trip, or plan a vacation. The same principle applies. By tucking away each month in preparation, you won't need credit cards or other debts to be able to do the things you want to do. The relief of stress from this will make the holidays all the more enjoyable.
If you or anyone you know would like to learn more on how to make this idea a reality, feel free to reach out to Money Motivated Financial for a consultation! We strive to make everyone more financially independent, and live the life they dream of!
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