We are about to enter the home stretch of the year 2022, and the holiday season is right around the corner. The holiday season is a wonderful time to unwind and spend time with friends and family, but it’s also a time of year when it’s simple to go overboard with one’s spending. Why don’t you try something different this year to ensure that you won’t have a pitiful account balance and a heap of debt when the year 2023 rolls around?
Transforming Waste Into Cash
If there was ever a time when having some extra cash on hand would be beneficial, that time is now. Get your hands dirty and start cleaning out those cabinets that are stuffed with things you haven’t used in a very long time. Take it one individual room at a time and be as ruthless as possible. A good litmus test is to ask yourself if you would pack and pay for these goods to be transported if you were forced to leave the country. You might be surprised by the things that you decide to keep! You can sell things online on Gumtree or Marketplace, or you can try Yaga if you want to sell clothing. Your unwanted items could be someone else’s treasure, and selling them could give your bank account a happy boost.
Handle the Money Munchers
To avoid becoming swept up in the spirit of wild spending, make a budget and figure out how much money you can squeeze out of your December cash reserves to fund everything. This will prevent you from getting trapped in the spirit of wild spending. Utilizing credit is not the best decision because you will be responsible for making payments on this balance for a number of months to come. In a perfect world, you would have begun a “festive fund” in January of this year, which would have allowed you to have some additional cash available right now.
If not, then you should begin one in January of 2023. It’s very simple: just put a predetermined amount of money away each month in a separate saving account for use at the end of the year. Spend any loyalty points that have been accumulated over the holiday season, and then start stockpiling them in January so that you can use them toward the end of the following year. However, the most important thing to do before you spend any money is to create a budget and then adhere to it.
From Myself to Me
If you are one of the fortunate individuals who will be receiving a bonus, you will most likely begin making plans several weeks in advance regarding how you are going to be spending it! But does that entail purchasing something for yourself as a present? You can amass a respectable little emergency fund over time if you put a percentage of your bonus payment each year and do so consistently.
Make a decision about how much money you will give to yourself in advance. It could be 10%, 25%, or even 50% of your bonus; after that, you can splurge on yourself and your loved ones with the rest of the money. Watch as the value of your donation rises thanks to an investment in a tax-advantaged savings plan, a high-performing unit trust, or an exchange-traded fund.
Give Generously and From the Heart
Organize your gift-buying strategy before you begin shelling out money. Create a list of the people whose presents you will be purchasing and decide how much money you will spend on each one. Don’t add anything else to this list, and don’t throw away money on stocking stuffers. If you can, try to do most of your shopping online because it makes it much simpler to compare prices and keep tabs on how much money you are spending. Charity shops are wonderful places to find great deals, or you could make and give homemade presents, such as cookies or hangers made of decorated wood that are beautifully packaged.
A “pamper hamper” can be customized and is available at reasonable prices. Include things that you are certain will be valued, such as chocolate bars, nuts, a delightful room spray, or a bottle of wine. You could also include a bottle of wine. A gift of an experience, such as a massage or an outing to a picnic spot, is a considerate present to give to a person who already possesses everything they could want. Family members can pool their resources to cover the cost, if necessary. Donate from the goodness of your heart, but don’t go broke doing it.
Do Not Waste, Do Not Want
During the holiday season, there is a tremendous amount of wasted food, and every scrap that we dispose of is a waste of money. Use your imagination, and begin some brand-new customs. When you have people over for dinner, consider hosting a potluck where each guest brings a dish to share. If you are in charge of preparing the celebratory meal, you should research new recipes, find cuts of meat that are more economical, and organize your menu well in advance.
First use what you already have in your pantry, then purchase the fresh ingredients because they are less expensive. Make meal plans, keep your recipes in order, and keep track of what you need to buy with the help of an app like Paprika. Although it’s customary for holiday menus to include appetizers, three distinct kinds of meat, and 2 or 3 desserts, this amount of food is simply excessive. Because less is more, the best thing you can do for your family is to prepare their favorite dishes, and don’t forget that the simple act of spending time together will help create memories that will last a lifetime.
Avoid Being The Number 99 Kind of person
Shopping at the last minute is one of the most stressful activities there is, not to mention the most expensive. After having to navigate the crowds and the chaos, you will be tempted to grab whatever you can in order to escape the area as quickly as possible. Retailers are experts at getting customers to make impulsive purchases, so the special holiday items they carry will likely be very enticing. Make a detailed plan of what you want to buy, whether it be food or presents, well in advance, so that you can complete the task at your own pace. You should anticipate that the only things you will have to purchase in the days leading up to Christmas are fresh vegetables.