It’s easy to get carried away during the holidays. But even amidst the fun and excitement of the season, it’s important to keep an eye on your budget so you’re not faced with a financial shortfall later. How can you resist the urge to overspend on gifts and celebrating with family and friends? Consider these tips to manage your holiday cash effectively:
Remember, January is a long month: It’s enticing to spend all your holiday season earnings on gifts, parties and decorations. But the sooner you spend it, the sooner you’ll start to stress out about living through 31 days of January. Be sure to leave room in your budget for the unexpected
Set up bill reminders: If you have a constant reminder of the bills you need to settle during the holiday and immediately after, you’ll be more inclined to manage your money effectively. As you shop for gifts, decorations and other holiday items, keep your financial responsibilities in mind to ensure you can cover them. Use alarms on your phone to remind you of bill due dates in advance or write them on your calendar
Use care with credit cards: Paying with credit cards is easy…but so is getting in over your head with credit card debt if you aren’t cautious.
- If you plan to use your credit card, ensure your bank account has at least 90 percent of the purchase total in available cash
- If you have cash-back credit cards, look specifically to the areas that will provide a return, such as gasoline for travel or groceries for holiday meals
- Aim to settle your credit card with on-time and in-full payment
Keep your priorities in check: If you have your financial priorities straight for eleven months of the year, it should be just as simple to keep them in check during December. Here’s how to stay ahead:
- On December 1st, list your financial responsibilities and prioritize them
- Determine how much of your earnings each one requires
- Set aside those amounts
Whatever you’re left with is what you can use for holiday spending
Give yourself a head start for next year: Open a holiday savings account for next year with $10.Then, starting the first week of January, add $10 each week. You’ll have over $500 to spend freely next holiday season without impact to your weekly budget.
Even better, consider a money market savings account for the higher interest it pays on your deposits. All it really takes is a little bit of discipline and attention to your usual spending priorities…that way, you can spend confidently and focus on the joy of the season!
If you’re looking for a bank that can make your holiday a little brighter, your search is over. Cash-back credit card? Check! High-interest Money Market Savings? Check! First Internet Bank has the products and services to make money management for the holidays – and year-round – easy. Check us out!
