Happy Saturday! The holiday season is the most magical time of the year. However, it can also be the most expensive. Between gifts, travel, decorations, and celebrations it is easy to overspend and neglect your holiday budget. With discipline you can keep your finances on track and enjoy your holiday season without feeling stressed out. Keep reading to find out what financial mistakes to avoid.

financial mistakes to avoid during the holidays

Not Setting a Clear Budget:

One of the biggest reasons people overspend during the holidays is simple they don’t set a clear holiday budget. Without a clear budget it’s easy to lose track of what’s being spent. Start by setting a total spending limit that is comfortable within your income and financial goals.

Ignoring Hidden Cost:

Build a small buffer into your budget for unexpected costs. This extra cushion keeps you from dipping into your savings. You could also consider starting a separate holiday savings account and put away money throughout the year.

Relying too Much on Credit Cards:

Credit cards offer convenience, but they can also leave you with post-holiday debt.

Shopping Without a Plan:

Impulse buying is one of the fastest ways to exceed a holiday budget. Before you start shopping, make a detailed list of everyone you plan to buy for. Set a spending limit for each person. Stick to the list as much as possible and resist the urge to browse beyond it.

Forgetting to Track Spending in Real Time:

Make a habit of checking your holiday budget weekly throughout the season. Stay aware of your spending to avoid overshooting your limits. This helps you make informed choices through the end of the year.

With a clear budget, thoughtful planning and a little mindfulness you can thoroughly enjoy your holidays.

Do you have any financial holiday tips? Let me know in the comments below.

–Chantel Keona