The festivity of December is replaced all too quickly by the due dates of January, when the bills from holiday spending and travel arrive. This kind of financial hangover can make the start of the year a little less joyful, but there are ways to prevent it. "People often go into the holiday season without a plan," says Rob Wurzburg, a Chicago-based financial adviser at Forum Financial Management.
"They might know who they want to give gifts to, but may not put numbers to it or think of what they want to spend overall, and that's where people get into trouble." To counteract the tendency to overspend, financial experts recommend the following six strategies: 1 Plan early and often Wurzburg urges people to start planning for holiday spending as soon as possible. "The earlier you start planning, the better.
Some people do a yearly budget in January," he says. People are also reading..
. While it's too late for 2024, you can start planning for the 2025 holidays soon. Setting aside money each month for the big end-of-year celebrations can reduce the risk of overspending or turning to debt, he adds.
Giving yourself a goal for the amount you want to save in time for the holiday season can help you stay on track, says Tiff any Murray, managing director at the Society for Financial Education and Professional Development, a nonprofit based in Alexandria, Virginia. "Make sure it's achievable and realistic within your budget," she says. Then, when you see an item on your list go on sale, .
