Get on Track with Your Spending

It’s the most wonderful time of the year! Christmas is right around the corner, are you ready? Ready to spend, spend, spend?  Spend on light and decorations, gifts, and food?  As we draw closer to the holiday season and all the expenses associated with this time of year, now is a good time to get your spending in check. 

While it is always better to give than receive, remember to give within reason; according to your budget.

October is Financial Planning Month and it is an opportune time to take a look at your spending habits, set a budget for you Christmas spending, and a budget that takes you into 2022. When planning, ensure that you look at your projections for January 2022.  Don’t start of the new year broke.

Here are a few tips to get you started.

 Rebalance your Budget for the Holidays:  Rebalance your budget to ensure you stay on track and don’t overspend.  Review the last few months of your spending and expenses and cut expenses where you can. Establish a baseline for spending. 

Set a budget for lights and decorations, including the electricity bill.  Consider the persons for whom you would like to buy gifts and set a budget for the cost of each gift.  If you are into entertainment during the season, catering or preparing all the food on your own can become quite costly.  Reach out to family and friends to participate in potluck instead.  

Remember, every penny adds up.

1. Establish Small Day-to-Day Budgetary Changes: Although you’ll be spending throughout the holidays, establishing small day to day budgetary changes can create a habit that will help you become a great saver in the future. 

• Avoid impulse shopping. Ask yourself, “Can I do without this?”
• Cook more and eat out less. Buying lunch everyday can dig deep into your pocket.
• Pay bills on time to avoid late fees and penalties which result in unnecessary costs.
• Use your debit card and let the credit card rest if you can. This helps to control spending.  You spend only what you have.

2. Pay yourself: A savings is just as important as paying a mortgage or rent.  Start small and grow.  If you already have a tight budget you would be surprised how easy it is to live on less.

3. Stick to the plan! Budget within reason and stick to the plan.  Be sure to give consideration to your current financial situation.  Include that plan for a “rainy day”.