- Already thinking about next December
Once the tree is down and the lights are put away, take a look at your expenses and decide what you will do differently when December returns…then resort to your best ally: time.
“If you plan to spend $1,000 altogether over the holidays, set aside $100 a month. That way, come October, you’ll have all the cash you need for the holidays, says Hannah. And to save even more money, consider bringing your lunch to work more often or making your coffee.”
- Create a holiday budget and track spending
Increasingly, Canadians are spending more than expected. To stick to a budget, occasional expenses must (also!) be part of the budget. This is the case for Christmas gifts, holidays, holiday gifts, and all one-time and recurring expenses. To this end, the ACEF des Basses-Laurentides has produced a table of occasional expenses to be completed to avoid surprises! The simpler the budget, the better, and a simple list on a sheet of paper of how much you’ll spend on each person will do. The most important thing is to do as planned and stay on course for a balanced budget.
“If you plan to spend $40 per person but spend $50 on someone else, you’ll have to spend $30 on someone else,” says Hannah. People who track their spending usually stick to their budget.”
- Credit cards: think “short term.”
By following your budget, you’ll better avoid the classic holiday trap of spending on credit and only paying in January or, even worse, all of 2018.
How do you recover from overspending during the holidays?
“If you take that approach, you’ll be spending too much,” says Hannah. Instead, when opting for credit, think about what you can afford to pay back in the 2 or 3 months after the holidays. If you only pay the monthly minimum, the interest to be paid on top of your purchases could represent a third or even half of the purchase price.
