The holidays can be very costly and many people go into debt as a result. If you are not wanting to avoid this risk, we recommend creating a budget and sticking to it all season. That can be easier said then done but if you follow these five tips, you can be successful and not occur any more debt at the end of the holiday season.

Tips on How to Budget for the Holidays

  1. Be Realistic With Your Budget. When developing your budget for the holiday season, you should take into account how much you make and how much needs to go to bills before you can spend any money. For many people, it is easier to set aside money for the holidays all year but if you did not do that or cannot do that, you have to base your budget on the amount you have after all bills have been paid.How to budget for the holidays
  2. Set Aside a Specific Amount for Gifts and Stick to It. When you are building your budget, you need to have a set amount for gifts. If you have ever seen something and thought it would be a perfect gift for someone but had already gotten them something, this year you will need to either return the other gift or not get the new one to stay on budget.
  3. Avoid Using Credit Cards. When you use cash instead of plastic, you are much more aware of what you are spending. By using credit cards, it can be very easy to let the charges run up before you even realize how much you have spent. Keep your budget in line by opting for cash for all of your transactions.
  4. Refrain from Making Excessive Purchases. During the holidays, there are countless activities and options to spend more money. If you have a budget for holiday activities, then you need to stay within that budget and stay away from spending too much money on them and have a low cost holiday.
  5. Be Careful Around Sales. Sales around the holidays can be very helpful when trying to stick to a budget but they can also be dangerous. You do not want to get sucked into a sale for an item that you do not need or had not planned to buy. Just because it is a good deal does not mean you need to blow your budget as a result.

If you need help staying within your budget during the holidays following these helpful tips. If you are facing potential bankruptcy, contact us at Clark & Washington today.