Did you know that a 2022 consumer survey shows 7 out of 10 Americans tended to overspend during the holidays? The holiday season is a magical time filled with festivities and the joy of giving. Yet, for many of us, it's also a season with a financial tightrope to walk. At Lisle Savings Bank, we understand the need to achieve the perfect balance between holiday cheer and a well-maintained budget, and we are here to help! Let’s dive into a few practical strategies to help you celebrate the season to the fullest without leaving your bank account at its emptiest.
Step 1. Setting a Realistic Holiday Budget & Spending Plan
Like any goal, attainability and realism are key. Setting a realistic budget is the first step to sticking to the budget - in any season. Before diving into the festivities, assess your current and desired financial situation. Review your income and typical expenses, then allocate funds for various holiday expenses. We encourage open discussions about budgeting and gift exchanges to set spending limits and manage expectations. Collaborate on cost-saving measures for group gatherings to ensure a harmonious celebration.
Even during the holidays, the 50, 30, 20 rule is great to follow:
- 50% of your income should go to needs
- 30% of your income should go to wants
- 20% of your income should be saved
Creating a detailed spending plan is imperative once the budget has been established. Break down your budget into specific categories, prioritize your listed expenses, and use your bank’s digital banking platform to keep your finances in check.
Step 2. Cutting Costs, Finding Savings, & Planning Your Shopping
Planning your shopping beforehand ensures you can find and enjoy the best prices, deals, and selections. Shopping at stores that offer price matching is also a great way to ensure you get the most out of your money. Plan for travel costs, book early to secure the best deals, and consider alternative travel options when possible. The allure of those last-minute holiday sales can be hard to resist, but it is advisable to avoid impulse buying.
Step 3. Managing Your Budget & Tracking Spending
It’s no secret, but it’s worth reiterating: keeping tabs on your spending is crucial to your budget's success! A plan without review is a plan for failure. Maintaining a detailed record of all your holiday expenses helps monitor your budget versus actual spending - allowing necessary adjustments to ensure you stay on track. Life is full of surprises, and the holiday season is no exception. Lisle Savings Bank reminds you of the importance of having an emergency fund to avoid undue stress or chaos.
Saving money doesn't mean sacrificing quality; it means making thoughtful choices that align with your budget. It’s time to emphasize the season's true meaning and find joy in simple moments. The holidays are meant to be a time of joy, not financial stress. At Lisle Savings Bank, we're here to help!
Contact our knowledgeable and dedicated staff today if you have questions or need assistance. We hope you make the most of these essential steps and strategies to help you stay on budget while enjoying the festivities.