The end of the year is around the corner, and for many people, it is an exciting time to celebrate with family and friends.
But, the holiday season can be more expensive than usual because of traveling, going shopping, decorating your home, exchanging gifts, and more. Regardless of your traditions, whether newly instilled or continuing through generations, it’s important to consider your finances and ensure you stay on track with your long-term goals.
Here are a few tips for taking on the holidays (with a little financial planning) in Boise, ID, and throughout Utah.
In most scenarios, planning ahead yields the best results.
Planning at least a year ahead for the holiday season will allow you to consider your yearly budget and stick to your long-term goals. Holiday spending can be a significant expense, and it can be helpful to use the prior year’s holiday spending as a guide to set short-term budget goals.
For example, if you spent $1,000 during the holidays last year, you’ll know that you need to save about $85 to $100 each month in order to meet your budget goals for the upcoming holidays.
Set a Budget and Stick to It
It’s easy to get carried away during the season of giving.
Many people spend hundreds or thousands of dollars on holiday shopping, decorations, and more. Before starting your holiday spending, create a budget and stick to it.
Like all financial goals, budgeting is fundamental. Determine a spending limit on gifts for family and friends, decorations, and whatever else your holiday spending encompasses. When determining this number, ensure it doesn’t derail your other financial goals, like monthly savings allocations or credit card payments.
By creating a budget within your spending limits, you can celebrate the holiday season stress-free, knowing that your financial goals are still on track.
Avoid Adding New Debt
The holiday season is one of the most debt-inducing times of the year.
It’s easy to use your credit card to cover the costs of many miscellaneous and even costly expenses. But the debt acquired during this time of year can be crippling for your financial goals. For example, even just a month of spending can create debt that takes months or even years to pay off.
By planning ahead and sticking to your budget, you won’t need extra help from credit cards or loans to pay off your holiday expenses. And avoiding debt will ensure the holidays don’t derail your financial progress and goals.
Get Crafty and Save When Possible
The holidays are often a time encompassed by traditions, but when taking stock of your finances and preparing for the holiday season, it’s important to recognize where expenses may need to be cut.
If you’re concerned about your finances, it might be time to reprioritize and redefine holiday expectations. Even without spending much money, you can still give a great gift and make unforgettable memories.
Ultimately, financial planning and holiday planning should go hand in hand, and neither of them has to be stressful. Planning ahead, sticking to a budget, and saving whenever possible can prevent you from overspending and keep you on track for your long-term financial goals.
TrueNorth Wealth Can Create Holiday Miracles
Working with an advisor can help you create a holiday financial plan and set you up for success in the long run. At TrueNorth Wealth, our goal is to ensure you achieve yours. We offer fee-only holistic financial and retirement planning services that will work with your circumstances to find the most optimal way to accomplish financial security.
To learn more or schedule a no-cost consultation with a financial advisor in Utah or Boise, ID, give us a call today!