The holiday season can be a time of great joy, but the joy can be quickly erased when the new year comes with new debt. Many people spend more during the holidays, the key is to avoid overspending outside of your means, while also saving during the year for the spending you plan to do. Borrowing money, possibly in the form of credit card debt, is the exact opposite of what you want to do.
Many people want to and get joy out of being generous during the holidays, but do not let that generosity for others hurt your own financial standing. Budgeting during the holidays is just as important, if not more important, than the rest of the year.
Freedom Debt Relief understands why you want to be generous during the holidays, just budget for that generosity, and do not be generous without a plan.
Plan Year Round
As you have probably learned, planning is one of the most important things to do when it comes to any aspect of your finances. Going into anything blind, or without a plan, is a recipe for disaster. By thinking forward toward the holidays earlier in the year, you will have time to put your plan in place and be ready for the holidays.
You should determine how much you want to spend during the holidays and what you want to spend that money on. It is much better to think about this ahead of time, instead of in the moment during the holidays, Freedom Debt Relief has found that if you think about this earlier in the year, you are more likely to make clear-headed decisions.
Save for Those Plans
Saving is just one piece of the puzzle that is planning after you have developed a plan, it is time to put practices in place that will ensure you have the funds you need during the holidays. Because you planned, you already know how much you will need when the holiday season rolls around, now it is just up to you to save enough each month to make sure you will have saved enough by the holidays.
It is better to save money during the year, instead of borrowing during the holiday season and trying to pay it back through the next year. Effectively, by borrowing money to finance your holiday season, you are saving 1 year behind schedule, and you end up paying more due to the interest charged.
The payments you make during the year on that debt could be set aside for next year’s holiday season. If you never save, you will always be 1 year behind and always end up paying more than you should have to.
Reduce Debt to Have More Discretionary Funds
Debt is killer, it eats away at any discretionary money you could use for things you want, such as holiday spending. By reducing your debt during the year, you will set yourself up for a more financially free holiday season.
The largest debt negotiator in the county, Freedom Debt Relief enjoys working with people to help reduce their debt and help set them on the path to financial freedom. We understand the burden and stress debt can place on families, something you should not have to worry about during the holidays. So, Freedom Debt Relief offers free debt evaluations to everyone, and we could help you evaluate how our program may help you get out of debt.