Buzz
I hate to shatter your pumpkin spice daydreams, but surprise! The holidays are approaching fast. If you're planning to partake in any holiday festivities over the next couple of months, you’ll need to ensure your finances are ready. So, put down that latte and follow three simple steps to boost your financial situation now. I promise, your pumpkin spice will be waiting for you later.
Secure Your Travel Plans
If you haven’t yet arranged your travel plans to visit family, friends, or simply escape town—make those arrangements now. Booking your flights at least six weeks in advance is often the key to snagging the best deals. The lower the prices, the more competition you’ll face for basic and standard economy seats.
Certain flight aggregators can show you if the price for the trip you're considering is a great deal or if it might be better to wait before purchasing or opt for a different travel day. Google Flights, for example, offers a price graph by day and includes a box indicating whether your trip’s prices are low, typical, or high.
Create a Budget
I know, you’re probably sick of hearing about budgeting. But as the holidays approach, it’s time to set up an extra budget specifically for the season. After all, it’s not just about buying gifts—there are plenty of one-time expenses that crop up this time of year.
Look back at your spending from last year to help plan for this year; if you didn’t track your holiday expenses in the past, try budgeting for the following categories:
Food and beverages for the gatherings you host or attend
Tips for your regular service providers (hair stylist, house cleaner, babysitter)
Travel costs, including flights, car rentals, gas, tolls, or ride-hailing services
Gift exchanges at work or school
Decorations, such as a live Christmas tree
End-of-year donations
Develop a Plan for Your Debt
I don’t recommend going into debt to cover holiday costs, but if you already have credit card debt, it can feel like you’re excluded from the fun while everyone else celebrates. Let me reassure you: even if you’re buried in debt, you still deserve to enjoy yourself. Your celebration might not be as grand as you'd like, but remember, a budget is flexible. You can adjust it from month to month to better fit your needs.
If you’ve been aggressively paying down your debt all year, perhaps it’s okay to reduce your payments to the regular minimum for October, November, and December, ensuring you have enough cash flow for the holidays.
If money’s still tight after making debt payments, think about purchasing gifts on layaway. It’s gotten a negative reputation due to service fees and required down payments, but many stores have made it more convenient. You might not get the immediate satisfaction of taking your items home to wrap right away, but you can plan ahead and spread out payments before the big gift exchange.
How are you getting your finances ready for the holidays? Are you doing anything differently this year compared to past preparations?
