October Cash Challenge: Get Ready for the Holiday Spend
This year, most of our money problems have been focused on saving, from our cell phone bill to restaurant expenses and interest on debt . This month we are dropping another challenge: drawing up a holiday spending plan.
Holiday spending can ruin your budget or worse, your finances. Consumer consulting organizations see 25% more customers after the holidays, and on average, Americans with holiday debt add nearly $ 1,000 to their workload.
In October, we suggest that you draw up a holiday spending plan so you can avoid any debt. This is not a task that produces instant results, but it is still important. Here’s how you can get involved.
- Calculate your discretionary spending: Calculate how much money you have in the next couple of months to spend on non-essential.
- List Your Holiday Expenses : This calculator will help you calculate general expenses like travel, gifts, parties, etc.
- Come up with some numbers : Based on your discretionary spending amount, create a realistic spending plan for each holiday-related expense.
- Find ways to cut back or earn more : If you are stretched out and your expenses exceed your cash flow, decide what expenses you will cut in the next couple of months to make room for additional expenses. Or, if your holiday budget just isn’t feasible, you may need to adjust some of your spending. Otherwise, you can promise to find ways to make extra money before the holidays.
If you are visiting, let us know and tell us what your biggest holiday expenses are. We’ll check again at the end of the month to make sure everyone is following their plan.
Photo: Sunny Studio