At the end of the year comes the Christmas season, and we all know that it is a period in which most people spend more due to the nature of the season, that is, from buying gifts for friends and family, to organizing meetings and / or end-of-year trips.
Many people are willing to spend their money, but when spending it, it’s important to do so with caution to establish a financial plan that will keep your family finances healthy.
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“Do not spend to spend, rather, spend wisely to avoid future economic problems, because January exists,” was the recommendation of Leobardo Martín Vázquez González, academic at the Autonomous University of Guadalajara (UAG).
He explained that some people tend to spend the money they don’t have at Christmas parties and New Year’s celebrations, usually through personal loans (credit cards, bank loans, etc.), which implies the accumulation of debts that in the past coming months will have to be paid.
He said that the world today is experiencing high inflation. In recent months, the prices of basic basket products have risen and may continue to rise in the coming months in different countries.
Tips to optimize and control December expenses
Decide on a budget for you and your home. Budgeting has to do with travel expenses, entertainment, shopping and gifts you want to give, and of course Christmas dinner. Setting a budget will help you cut down on overspending and help you avoid impulse purchases.
Buy things in advance as it is normal for the prices of products to go up during the Christmas period, especially when Christmas is just a few days away. Buying what you need in advance will help you get things at a cheaper price than waiting for the last few minutes to get them.
Track your spending. When you go shopping, it’s imperative that you stick to your budget list to avoid going over it. Making use of your budget list will allow you to track your spending from the funds you have allocated for the season.
Use cash and/or debit card and leave your credit card at home, since using the money you have available will allow you to control your expenses. The convenience of buying with the money available is that the mind becomes more cautious when making decisions to prevent debt.
Bottom line, it takes discipline to stick to the budget you’ve made. First instincts are always right. If it’s not on your list the first time, chances are it’s not too important.
Therefore, it is always important to separate your needs from your desires. Remember, as we all anticipate the joy of the holiday season, it is also the perfect time to forge our financial plan so that January ushers in a year of prosperous finances.
Anyone who does not have enough financial slack in January will undoubtedly have lopsided finances for the rest of the year.
