How to Plan Your Finances This Festive Season
From the nine-fiver who puts in extra hours at work for an overtime pay-out to the business owner who sits down with his/her accountant to understand how he/she can make allowances for that thoughtful present for his/her loved ones, the festive season is marked poignantly with the alternations between celebrations and the anguish of being able to afford such celebrations. Emotional connections established during the holiday season, when friends and families come together, sweetly coerce us into stepping beyond our financial limits to indulge in generous gifting. But should the festive season really have to burn a hole in our pockets?
Absolutely not! And I am not talking about limiting your healthy splurge on buying presents for yourself and your loved ones. Planning ahead does the magic. If you think it’s too early to plan for Christmas, I am going to tell you it probably is a little late. When you are more conscious of your financial planning for the festive season, you will be able to step into the New Year without suffering from a major spending hangover. Planning will also make it easier to RSVP an exciting “Yes” to your friends’ festive get-togethers, and Christmas shopping will be that much more gratifying.
There really is nothing like getting ahead to help us keep our bank balance and festive checklist in order. Because as much as we may want to drown our fears in that glass of wine, our bank balance continues to remind us how important it is to plan ahead so that celebrations don’t come at the cost of our emotional health. I’ve known people who have been down this path, and to ensure that you can enjoy the holiday season, I am going to share some of my financial planning tips that work like a charm. Without further ado, here are my tips on how to plan your finances this festive season ~
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#1 Santa’s not the only one who needs to make a list
We live by so many lists, that if I were to go on, I would probably end up making a list of the lists I live by… And yet, making a list for the festive season seems odd to most people. A comprehensive list is my first step towards planning my potential spending needs, and my advice would be to list out all of the people you are going to be buying presents for; to make things easy, I use a note app or spreadsheet.
I also find it particularly useful to assign an approximate amount of money that I will be spending next to each name on my list. Remember to keep these numbers as close to your actual financial standing and to be as honest as you can about your expenditure. Another pointer would be to jot down what you may want to get for each person, alongside the respective person’s name, on your list. This list will serve as one of the most helpful tools when you go out shopping.
#2 Decide on your budget
After you’ve chosen who you’re purchasing presents for, the next thing on the agenda is to create an overall budget based on what you anticipate spending over the entire festive season. The list you made earlier is a reference point for part of your expenses, but there is so much more to festive celebrations than gifting. You will be shopping for yourself, and then there are other bills and outgoings to accommodate. Additionally, figure out what events you will be attending or hosting and prepare a budget for your potential expenses.
The secret to making your budget work for you is to ensure that you slightly over-allocate your expenses. And when it’s time, make sure that you spend within the assigned expenses instead of going over them. The additional money can be kept as a buffer for things that you may have forgotten.
# 3 Reward yourself through offers
Sometimes, the whole idea of gifting and giving becomes so overwhelming that we put ourselves right at the bottom of the list; spending on ourselves only if our budget will allow us to do so. I feel that if we begin early and find the right offers when we go shopping, we may end up saving more than we thought. There really are countless ways in which you can take advantage of festive offers at different stores.
While you are shopping online, you can look for cashback offers. Then there are discount vouchers and credit card reward points to think of too. Your reward points can be converted into vouchers that can be used crosswise over numerous online or brick and mortar stores. By being able to save through these offers, you will be able to enjoy your spending sans guilt.
#4 Set up a Bank Account
It is also a smart thought to set up a savings account aptly labelled “Festive Season” to isolate funds ~ as it’s never too late to set some money aside to help in December. It will keep your spending in check and help you keep track of your actual budget without mixing personal and everyday expenses with your festive expenses.
A separate bank account will also help in building your budget over a period of time. By transferring small amounts of money as and when it is available to this account, you will ensure that you can smoothly build your budget in the weeks leading up to Christmas so that you can enjoy the holiday season without feeling that you’re going overboard because you’ve already allocated funds.
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#5 Christmas time!
Time plays its mischief in our minds ~ as the same duration that would feel infinite, transforms into the blink of an eye. Christmas brings in so much to cherish and enjoy that we don’t realize how quickly days turn into long nights of celebrations, and work leads to a round of drinks with your co-workers, and soon you have to make time for decorations that make your home look festive only to realize that you don’t have enough time on hand.
Schedule your celebrations by planning dinner dates and Christmas drinks in advance. Knowing the dates on which you are available will help you decide if you can say “yes” if anything spontaneous pops up. And because schedules are the topic of discussion, I’d like to add that now is the right time to book tickets for flights and trains if you are going to be travelling over the holiday period to see friends and family. Rates often tend to shoot up closer to the date of your travels, and planning now will help you save some.
#6 New Year is also round the corner
Christmas celebrations keep us so busy, that it’s easy to forget that January is right around the corner too. And with the dawn of the New Year, realizations hit too quickly that finances are somewhat stretched and that you may have to tighten your purse strings even for daily expenses.
In my opinion, it’s always better to consider your expenses for January and February and plan for this time too, so that you can start 2021 feeling prepared. Ensure that you enjoy the holiday season and secure yourself financially by setting aside time to plan ahead.
I hope that this festive season brings joy to you and your loved ones. With these tips on how to plan your finances this festive season to help you, the season will bring fewer anxieties and stress-free celebrations your way!
Such useful tips! I’m doing a lot of these already (I take Christmas shopping/planning *very* seriously) 😀 and in reality just prepared a budget list last evening. I hadn’t considered websites with cash backs though – that is such a great thought! xx
Aww ~ you’re so sweet, Rhea. I’m glad you found this post helpful!
Christmas is doubly hard monetarily, as it is additionally my husband’s and my mother’s birthday… Eh, December, you have no leniency on me! 🙂
Oh well… do the best you can, eh?! 🙂
I admire how you are encouraging us to plan ahead… Between extra baking days, cooking for holiday get togethers, and all the shopping… I always have a hard time sticking to our budget this time of year! Yes, life can overpower, and in some cases, posts like these are genuinely required. Thank you for sharing. ❤️
Thank you for your affectionate and kind thoughts, Sunila.
Parity in life should to be more about not being disappointed and overwhelmed; for example, our need to overspend with a specific end goal to impress in our relationships.
Well said, Sameena!
I can never settle on purchasing only one present for each of my loved ones; I love going overboard! Be that as it may, I agree with using an arranged spending plan; this is something I am chipping away at right now… 🙂
Me too… I love picking up gifts {plenty of them!} for my loved ones!!
Love the wonderful way you look at arranging your funds! So helpful. I’m excited to have some help staying on top of my finances this year… ✨ Thanks for sharing.
Your sweet words are dearly appreciated, Mayuri.
I’m loving this post! It’s such a reviving point of view toward budget planning, Tanya. Much the same as I believe in tuning in to your body with regards to food and exercise… I certainly figure a festive balance will differ from person to person, and you should simply do what feels right for you!
Absolutely!!
Hello Tanya!
Wow – I am SO inspired with your organisational skills! I’m anticipating being more organised this season as well – and your tips have given me the nudge I required. Happy festive season, beautiful woman! xx
Thank you so much, Tara! Compliments of the season to you too!
Bonjour Beautiful,
I really needed this in my life … trivial spending is my moniker. Haha!!
Thank you, Lars.
What’s a budget? 😀 Just kidding lol, my husband didn’t find that funny either – haha! We are pretty good about being reasonable, and don’t overdo it.
On a side note: Always love reading your blog-posts, Tanya. Really, you are a Beauty with an amazing Mind! 🙂
Such a generous compliment! Thank you, Mona. 🙂
I love that this post focuses on festive spending to ensure we purchase with intention while still embracing the essence of Christmas! There’s everything to be proud of when we choose to be savvy and clever with our money. 🙂
Glad to hear this, Vrunda. Thank you very much indeed!
Joining in to feel invigorated about my financial position, and become aligned with my financial goals for 2021! ‘Tis the season to be Mindfully Merry with our Money’ #financiallyempowered
I echo your sentiment, Vivek. And thank you for your warm appreciation!
Can you believe Christmas is only one month away?! Whatever everyone is aiming to do, I absolutely agree that it’s not too late to #budget your Christmas! Especially as parents, I think we all need to get better and stronger at saying no to our children…
Thank you for adding to my post so wonderfully, Priyanka.
Yes! It can be tempting to buy every good deal you see, especially with Black Friday advertisements popping up everywhere. Make an effort to only buy what you need and can afford. Make a list of what you plan on buying, and stick to it! #seasonsavings
Thank you for that advice, Sharad.
Such a wonderful share!
My thoughts: Not only has the pandemic had a huge impact on our own savings and livelihoods, but also those of small businesses and local independent stores in our communities. This year why not make something at home for your loved ones or support local shops whilst staying safe and maintaining social distancing… ❤️
Thank you, Anjali. Very well said!
It is LIT to be in control of your finances.
It is LIT to start your investment journey early.
It is LIT to want to achieve financial well-being.
This Christmas be LIT! ✨
On a side note: It’s okay not to spend a lot of money at Christmas time! Being safe is the best gift you could give a loved one this year!
Advice that we will all benefit from, no doubt!
Well said, Tanya! Life can be tricky and unexpected at times – your finances need not be! When it comes to your money, it is better to be sure than hopeful. Take control of your finances today!
Thank you, Vanshika. I’m so glad to hear this!
With Christmas just around the corner, we all feel the need to shop or as the new normal would have it, online or order-in. So, it is important to monitor expenses especially during this time, to avoid overspending. Here’s to triumphing over our financial demons & accomplishing our financial goals this festive season!
Hear, hear!
Such a beautiful post! ✨ Anything in life really starts with setting an intention… Thank you for sharing your top tips on how we can take control of our Festive Finances to help us enjoy the holiday season!
Thanks so much! You are very affectionate and kind, Partima.
I love this! ❤️ The key to most things in life is Consistency. If you consistently show up for your money (with Money Dates) then your money will show up for you. Keep them coming!
How nice of you, Vinita. Thank you!