Plan your holiday spending

The holiday season is often referred to as the “most wonderful time of the year.” Seeing beautiful decorations and fun seasonal activities can be enticing ways to spend money. Before committing to spending money, consider everything you have planned for this holiday season. Make sure to plan for any upcoming occasional expenses, such as gifts, travel, decorations, and holiday meals. Sometimes all the little extras can really add up, and you can spend more than you intended. When you are experiencing financial distress, this holiday season may feel less enjoyable. Take the time to plan your spending, so you can truly enjoy your purchases without the added stress. 

First, decide how much you can afford to spend. If you're unsure where to start, review your spending from the same time last year and determine if adjustments are needed. Try to avoid borrowing money that you will struggle to pay back later. Once you plan the amount you have available to spend on some occasional expenses, write down what you plan to buy. Some possible categories may be food, travel expenses, gifts, and entertainment. 

Consider all the additional expenses that can accumulate if you don't have a plan in place for how to pay. Do not be surprised if you need extra money for gas when planning to travel to see friends and family. Before purchasing the latest home decorations, consider all the other expenses that may be more important to you this year. If you like experiences, be sure to plan for the extra costs of any seasonal activities you plan to participate in with friends and family. 

Be thoughtful about how much money you are comfortable spending and what purchases will contribute the most to a stress-free holiday. Take the time to track your spending along the way to stay accountable. Find ways to reduce unnecessary spending while still enjoying time with family and friends. Consider drawing names to buy fewer gifts at larger gatherings, setting gifting limits to stay within reason, or trying to find homemade gifts that others may truly appreciate. Avoid letting financial stress negatively affect the joy in your holiday by creating and following a spending plan for the season that meets your needs.