Dec 20, 2021
The holidays are a wonderful time, but if you are not careful, you could also end up with a season full of financial stress. The best way around this is to make and stick to a budget plan.This won’t only help you reduce stress, but it will also save you from overspending. Learn how to begin planning for the holidays while minimizing the financial impact.
Begin with a list of holiday expenses
Decide how much you can afford to spend responsibly before the holiday season begins, and then divide that amount into a budget. A budget is an estimation of your money, and if you write it down you are 1.5 times more likely to achieve it. So make a note of all of your expected holiday spending. In addition to gifts for friends and family, consider holiday clothing, travel expenses, shopping, decorations, donating to charitable causes, food and drinks for parties, holiday concerts and movies, gift exchanges at work, greeting cards, family photos and anything else. This will give you a general idea of what you will need to pay for. Once your budget is made, you can start planning your holiday.
Decide on Your Spending Limit
Now that you know where your money is going, it is critical to examine your budget and determine how much money you have for your holiday spending. Also if you tend to overspend on your credit cards or debit cards, it is good to pay everything in cash for holiday shopping. Give yourself your full budget in cash to become more mindful of your spending habits.
Use cashback credit card
As you plan your holiday shopping, consider having the right credit card in your wallet to maximize each purchase. One easy way is to use a cash back credit card that earns a flat rate on every purchase. With this type of card, you can earn anywhere from 1.5% to 2% cashback on every purchase, adding value not only during the holidays but also on your regular everyday spending too. And if used efficiently, earning a little cashback on your spending can add up over time to help you earn big savings throughout the holiday shopping season.
Track your expenses
Putting your budget on paper does not imply your work is done. You must still keep track of your expenses as you shop to ensure that you remain within your budget. Take your gift list and budget sheet along with you on every shopping trip. Furthermore, keep track of your holiday-related outings and other expenditures as it can easily get out of control if you aren’t paying attention to the total amount you’re spending.
Shop smart
If you can't narrow down your gift list, stretch your budget a little by shopping strategically. Use price-comparison apps such as ShopSavvy to ensure you are getting a good deal on everything you buy. Think about doing most of your holiday shopping online during sales. Aside from the convenience, it is simpler to compare costs. Also don't forget to use discount codes to save money.
When your holidays are over, recheck your budget and see how well you managed to stick to it. If you did stay within your limits, congratulations because you’ve just figured out what works for you. However, if you went over budget in certain categories, it's an indication that you need to adjust your budget for next year, allocating extra money to those specific categories. Hence set your expectations and budget, but don't go overboard.
For more tips, check out our other articles. BanqMart is always here to help you make the best financial decisions.
Struggling with multiple debts? Debt consolidation May be the solution you need. Explore the options available in the UAE in consolidating your debts.
Sep 12, 2023Considering a personal loan in the UAE? learn about the best banks, their benefits, and eligibility criteria. make a wise decision by comparing interest rates and repayment options.
Aug 21, 2023Discover how to achieve and maintain financial security in the UAE with effective strategies and expert guidance.
Aug 4, 2023Find the perfect card that suits your needs and enjoy the benefits without annual fees
Jul 24, 2023Secrets to maintaining a good credit history and why it’s crucial. take control of your finances and unlock better opportunities.
Jul 10, 2023Learn how to make the most of your credit cards with our comprehensive guide on responsible spending, dos, and don’ts.
Nov 27, 2023Make the most of your travel credit cards and save on your uae travel expenses. Find out how to maximize rewards and unlock discounts.
Nov 15, 2023Enhance your credit score and increase your eligibility for personal loans in the UAE. Find expert tips and guidance to improve your financial future.
Oct 30, 2023Navigate the world of credit cards as an expat in the UAE. Discover the top options and enjoy exclusive benefits tailored to your needs.
Oct 26, 2023Opening a bank account in the uae? Don’t fall into common traps. Learn about documentation, fees, and Key considerations.
Sep 22, 2023Struggling with multiple debts? Debt consolidation May be the solution you need. Explore the options available in the UAE in consolidating your debts.
Sep 12, 2023Considering a personal loan in the UAE? learn about the best banks, their benefits, and eligibility criteria. make a wise decision by comparing interest rates and repayment options.
Aug 21, 2023Discover how to achieve and maintain financial security in the UAE with effective strategies and expert guidance.
Aug 4, 2023Find the perfect card that suits your needs and enjoy the benefits without annual fees
Jul 24, 2023Secrets to maintaining a good credit history and why it’s crucial. take control of your finances and unlock better opportunities.
Jul 10, 2023Learn how to make the most of your credit cards with our comprehensive guide on responsible spending, dos, and don’ts.
Nov 27, 2023Make the most of your travel credit cards and save on your uae travel expenses. Find out how to maximize rewards and unlock discounts.
Nov 15, 2023Enhance your credit score and increase your eligibility for personal loans in the UAE. Find expert tips and guidance to improve your financial future.
Oct 30, 2023Navigate the world of credit cards as an expat in the UAE. Discover the top options and enjoy exclusive benefits tailored to your needs.
Oct 26, 2023Opening a bank account in the uae? Don’t fall into common traps. Learn about documentation, fees, and Key considerations.
Sep 22, 2023