Preparing for the Holiday Season: Tips to Avoid Debt and Enjoy Stress-Free Celebrations
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By Bromwich+Smith Staff | 1115 words | Reading Time: 5 minutes and 34 seconds | Last update: 2023/11/03
As we start preparing for the upcoming holidays there are many thoughts that run through our heads. The holiday season holds diverse meanings for different individuals, joy, laughter, family celebrations but it also brings on stress, fear and anxiety from the increased spending. This time of the year is the number one spending season- which can be a huge stressor for many. Whether it's higher food costs, utility bills, or the rush of gift shopping, now is the ideal moment to take a closer look at your finances, make prudent decisions, and steer clear of accumulating debt that often plagues the start of the new year.
Analyzing Your Financial Landscape
Before embarking on your holiday preparations, it's important to know where you are starting at. Start by assessing your disposable income, determining the amount of money at your disposal. Include any expected bonuses but refrain from counting on uncertain windfalls. Past-year bonuses, overtime, or extra hours aren't guaranteed, so focus on what you can rely on.
When reviewing your expenses, prioritize non-negotiable bills like your mortgage or rent, taxes, and insurance. Following this, delve into variable expenses, which are often the culprits behind overspending. Variable bills, such as utilities, can fluctuate due to seasonal changes. To prepare for potential increases in utility costs as temperatures drop, allocate extra funds in your budget. Groceries, another variable expense, demand special attention, especially considering the recent surge in food prices. Tracking your grocery spending after each shopping trip helps you maintain a clear picture of your weekly financial situation.
Gift-Giving Strategy
If you're planning on buying gifts for your loved ones, it's wise to create a comprehensive list of recipients. Your list will differ depending on the size of your family, your social circle, and any extra categories such as teachers, charitable donations, or co-workers. Compare it to last year, maybe there have been new additions to the family or you have decided to scale things down. Once you've finalized your list, you can start planning the gifts you wish to purchase for each person.
Children, in particular, may present you with extensive lists of must haves- perhaps an extravagant Santa gift as well. Your responsibility is to manage their expectations while adhering to your budget. Fortunately, there are numerous apps available that allow you to explore sales flyers and receive price drop alerts. Initiating your shopping early provides you with ample time to scout for deals and protect your bank account from the shock of last-minute spending.
When you are planning your list don’t forget your children list- who do they need to shop for? Perhaps there is a gift under the tree from your child to your spouse, their sibling, your extended family members. Include these in your budget.
Cutting Back on Non-Essentials
Trimming non-essential expenses is an effective way to create more financial flexibility for holiday shopping. Consider canceling subscriptions or services that you no longer use or need. That streaming service you've been paying for but not using might seem insignificant at $10 to $20 per month, but it accumulates over the course of a year. If you're a daily coffee drive-thru visitor, ponder making your morning brew at home to save the $5 daily habit that swiftly adds up. Review your cable and cell phone packages; you might discover areas where you can cut back without sacrificing quality of life.
Additionally, explore opportunities to boost your income. It could be as straightforward as cashing in on the recyclables piling up in your garage by taking them to the recycling depot. If you're skilled at gift-wrapping, you can advertise your services on local community platforms, while those with a knack for physical labor might consider offering snow removal services. Leveraging your existing skills can be a fantastic way to augment your income during the holiday season.
Think of small things you can be doing throughout the year that add up. Simple tasks like bringing your reusable shopping bags! How many times do you forget and have to pay $0.25- $2.00 for a new bag, it adds up.
Plan Ahead
Think ahead and plan out the rest of 2023. Are you having family over for a big dinner, going out to a staff Christmas party and need a new dress? Maybe you have a few nights out and need to budget for taxi rides home. Plan ahead, put the costs into your budget now and you will be able to plan for those bills ahead of time.
Start your pantry stock up as things go on sale, with the kids being home for school you will likely see your food costs increase over winter break. Heating bills also go up, if you have the ability to overpay those bills now those increases wont hit you post holiday season.
Keep an eye out for sales of gift wrapping, tape, and any of those small things we forget about each year. Bulk stores are often a great resource, but have limited quantities of these items.
Knowing Your Options
Despite your best efforts, you may find that your finances are still strained as the holiday season approaches. It's essential to understand that debt can affect anyone, and the pressure to have disposable income during this season can be overwhelming. Having knowledge of your options and a plan in place can help you enjoy the holidays without the weight of financial stress.
One potential solution is to consider filing a consumer proposal. Opting for a consumer proposal before the holidays can provide much-needed relief, allowing you to enjoy the season without the constant worry of creditor calls or unpaid bills. Consumer proposals are a viable choice for many Canadians dealing with debt, and reaching out to a knowledgeable debt relief specialist can be the gift you give yourself this holiday season.
Bromwich+Smith: Your Debt Relief Partner
With thoughtful planning and a proactive approach, you can enjoy a festive holiday season without accumulating debt that lingers into the new year. Prioritize understanding your financial situation, create a comprehensive gift-giving strategy, and trim non-essential expenses. If needed, explore debt relief options like a consumer proposal to ensure your holidays are filled with joy, not financial stress. Bromwich+Smith is here to support you on your journey to financial well-being.
Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, Live Chat or you can request a call back at contact us page. We want to see you flourish!