As we draw closer to the holidays, there are a lot of financial commitments to take care of. Typically, these commitments put a strain on our budget, and in some cases, we feel the brunt of this predicament when the celebration ends.
Most people believe that it is normal to go big during the holiday seasons, and so overspending can be permitted. However, this narrative is not entirely true, as you can still enjoy the holidays while staying within your budget. It takes a lot of financial discipline and effort, but it works.
In this interview, a representative from American Home Resources, a humanitarian organization, offered good advice on how to be prudent in our spending this holiday season and ways we can spend while staying within budget.
What do you think is majorly responsible for people spending over their budget during the holidays?
Well, a lot of things come into play in this case. For one, people consider the holidays as a period when you go all out, and they use this mindset in their planning efforts.
So they make a budget for gifts, parties, family functions, home decorations, and apparel. In the process of making these purchases, they overspend without much thought simply because they believe it’s permitted.
In addition, also, spending on the holidays at the wrong time is a factor. This is because market prices increase during festive seasons, and therefore, it may be impossible to stick with previously calculated budgets.
To stay within budget, what do you propose they do this holiday season?
There are a lot of ways people can keep their holiday spending on a budget. They can consider setting a limit within the budget, hiring a financial advisor to avoid impulse buying, and making provisions for sundry expenses in their budgets just in case.
Since the market is unpredictable, extra cash can be reserved to meet up with unplanned expenses. Also, it will be much easier if a scale of preference is created, as this will help people identify what should be a priority and what can be forgone.
How does American Hope Resources help in creating awareness on this particular issue?
Through our website, we sensitize the public in areas concerning financial planning. We do this by offering advice through photos and articles and by connecting with people far and near in online communities.
What advice do you have for people with high-end taste who, for some reason, cannot afford the luxury this holiday season?
People who cannot meet their material needs this holiday season can still make the most of the season with what they have. They can enjoy the season with their family and friends and be involved when businesses have their sales.
Not having the financial capacity during holidays is quite normal. To avoid such a thing from happening in the next holiday season, American Hope Resources encourages you to start saving up beforehand.
Do you think it is possible to save while staying within budget? If so, what are the best ways one can save this holiday season?
It is possible to save up while sticking to your budget. All you need to do is shop early to avoid inflated prices, use old gift cards, make gifts instead of buying them, stay at home if possible, and most importantly, make allowance for sundry expenses.
If you are lucky, the allowance made for extra expenses might serve as your savings, and it can serve a different purpose later on.