We all know why a budget it is essential for financial success. However, when it comes to the holidays one might want to let your hair down and leave the calculator at home. Unfortunately, during December most consumers get themselves into financial trouble, which is why a budget, just like every other month, is key.
Here are the top benefits of creating and sticking to your holiday budget:
1. It protects you from making debt
Spending at will, especially on holiday when there are considerably more daily expenses, could eventually force you to make debt. Which means when 2017 arrives your financial situation will be worse than it was in 2016, with higher monthly installments and more pressure on your cash flow.
By sticking to your holiday budget you can prevent the above.
2. It relieves financial stress
Hands up if your finances keep you up some nights? The truth is that everybody worries about money every now and again. During the holidays this is naturally a part of our brains we try to escape. But willy-nilly spending will inevitably add to your financial stress sooner or later.
With a budget in place you have less to worry about, and can leave your financial stress at home with conviction.
3. It allows you to be more resourceful
Just like other times of the year, a budget makes you to think twice about unnecessary purchases and wastefulness. When saving money isn’t top of mind it is easier to go out for lunch even though there is food that could spoil at home. Or buy clothing or toys for the kids just for the sake of “want” and not “need”. Of course while on holiday it is a time to be more lenient and spoil to yourself and the kids, and by all means if it fits into the budget, do! Just keep in mind that a little resourcefulness today could perhaps make more room in the budget for the larger, more important purchases tomorrow.
4. It forces you to prioritise and plan better
Being on a budget forces you to plan and prioritise your spending. Activities that cost money need to be planned and researched to ensure that you really get what you are paying for. Sometimes a limited budget can make room for more free family activities where quality time can be spent together, which is exactly what family holidays are about.
If 2016 has left you completely broke and financially over-indebted, contact Debt Rescue now. Don’t wait until the New Year to get your life on track again. Do it now and enjoy the December holidays stress free.