It few weeks to Christmas. That time of year that just gets people into a complete mood and sometimes cause more anxiety and financial stress than necessary. Despite the fact that we know Christmas is the same day every year, it can still manage to catch us unaware when it comes to our financial goals. Christmas is an expensive time of the year but it ought not to be so.
Here are some tips to avoid going broke this Christmas.
Make a budget and stick to it
The best gift you can give yourself this season to avoid going into debt is to make a budget. If you buy everything you want on credit, without having any idea whether you can afford it or not, you could wake up to January feeling anxious about not knowing how to pay your debts. Make a reasonable budget and stick to it. The temptation to exceed your budget might set in, but stick to financial discipline with the thoughts of the incoming year in mind. If you’ve not started saving or have no savings set aside for Christmas, then figure out how much money you have now and start drafting a budget for Christmas. You still have a month to make this happen.
Don’t try to impress anyone
If you don’t have enough money to host friends, then don’t do it. There’s no harm or shame in having a quiet Christmas with families and few friends. Christmas is supposed to be about the birth of Jesus. If it turns into a spending or giving competition, it’s easy to lose the focus on Jesus. If this happens, try taking a step back. Don’t ruin your year financially just to make one day memorable. People would much rather have fewer and less expensive gifts than have you stressed after Christmas because of debt.
Have set financial goals for 2020
The key to staying sane this season is to have the thought of 2020 in mind. One way to do this is to make a list of what you want during the first two to three months of 2020. First, determine your total budget. Then, list the things you want to get, it could be business expansion or starting a new business etc and how much you plan to spend on each. It is very good to set aside a little money, you don’t want to start 2020 like someone who never had a dime in 2019. The goal is to always stick to your needs and not your wants. Be sure to track what you spend whether you do your shopping all at once or throughout the year.
Cut down on travel expenses
Do not try to travel in style this season if you can’t afford it. If you are flying to see people, then that could be a significant cost. You can travel in commercial bus, train or even fuel your car if you have to travel a long way. Depending on the location where you would want to spend Christmas, you may need to consider your travel expenses.
Move your budgeted funds to one account
All the funds you plan on spending this Christmas should be moved to one account. By doing this, it would be easy to keep track of how much you spend in total. Using multiple credit card will make it difficult to track your expenses and you will keep spending without stress because you feel there’s enough money to spend.