With Thanksgiving behind us, the holiday season is in full swing.  Along with the excitement, however, we may be experiencing the financial impacts of holiday shopping, which often throw carefully planned budgets awry. If your Black Friday/Cyber Monday purchases hit you harder than planned, you’re not alone! Thankfully, with some smart strategies, it’s possible to get finances back on track and prepare for a holiday season that won’t break the bank.

Here’s some tips to help manage holiday expenses and keep your finances in check through the holidays:

1.      Assess Your Spending So Far

The first step to rebuilding your financial plan is understanding where you are now. Looking carefully at your recent purchases can help you understand which categories have pushed your budgets to their limits. Knowing which categories you’ve spent the most on and by how much will help you understand where you can re-balance across other areas of your budget going forward.

2.      Re-Establish A Clear Holiday Budget

Even with Black Friday and Cyber Monday behind us, there are still holiday costs to consider: gifts, travel to visit relatives, food, and festivities. Look at what you have spent so far and spend time realistically assessing your upcoming expenses. The key point here is to be as realistic as possible. If you manage your finances as a household, it can be helpful to have a family member serve as an accountability partner to make sure that you’re being as honest as possible for what’s upcoming.

Assign specific amounts to each category, such as gifts, meals, and events. If you expect that you’ll have difficulty sticking to the new budget, try using cash or a debit card with a set limit that caps your spending. Having physical limits on the amount of money you can spend often makes the purchase feel more tangible, helping you stick to your original budget.

3.      Prioritize Paying Down Debt Quickly

If you used a credit card for your recent holiday shopping, consider setting up a plan to pay off the balance quickly to avoid high-interest payments. Starting with higher interest balances is always a priority. This could involve putting down some of your emergency savings or other savings to ensure that you can get through the holiday season debt-free. Seeing how much holiday shopping debt you have will also give you an idea of how much you need to save for future expenses.

The pressure of the holidays can become overwhelming. Therefore, by focusing your attention on reducing debt balances instead of increasing your savings or hitting other financial goals, you can worry less about the future.

4.      Plan For Thoughtful Gifts Thoughtfully

While the season of giving can give you the chance to show others just how much they mean to you, the best gifts aren’t necessarily the most expensive or the most numerous. Sometimes, practical gifts like handmade items or experiences combined with a handwritten note can often carry more weight than pricey purchases. These thoughtful gestures can save you money and help bring a personal touch to the holidays.

Also, you don’t need to get something for everyone you know. Having practical discussions with your family members prior to the holidays about who to purchase gifts for can be a great exercise, even with your extended family. Setting limits in terms of how many people, how many gifts, and how much money to budget can be a great start to improving your financial position after the holidays.

Remember to take some time to consider the true meaning of the season. Holidays are about connection, gratitude, and generosity, and we can often get caught up in the commercial aspects of it all. Make sure to take some time to reflect on the true spirit of the season.

Preparing For A Debt-Free Holiday Season

By taking small steps to manage your budget now, you can approach the rest of the season with peace of mind. With a bit of planning and a focus on meaningful, affordable celebrations, it’s possible to enjoy the holidays while staying financially secure. At Hickory Point Bank, we’re here to help you make the most of your finances so you can start the new year feeling confident and prepared. Need help or have questions, contact us today.

Happy holidays from all of us at Hickory Point Bank – we wish you a joyful, debt-free season filled with memorable moments and smart spending decisions!