Halloween and Thanksgiving occasions are just at our door step. After that, the biggest celebration (Christmas) is waiting. It is very important for you to manage the obvious spending during the holidays to avoid post festive financial ruin. Having less money to pay bills can mar your spirits after the holidays are over. In order to avoid a holiday finance hangover you may have to leave some bad financial habits beforehand for this year.
If you don't change your bad financial habits such as impulsive shopping to be happy, excessive usage of credit cards to earn points, you may face a serious financial crisis later on. Once you start living a disciplined financial life, you'll easily achieve financial freedom which will help throughout your life. Just you need to follow some tactics that will help you overcome post holidays financial burden.
Some of the habits that can change your life and help you avoid financial hangover after enjoying festivals are given below.
1. Practicing frugality
You can practice frugality in order live your life within your means. Frugality helps you save more than usual and this helps you enjoy the festive seasons too.
2. Giving up impulse purchases and worse purchasing decisions
You will have to try and give up on the impulse buys as the expenditures you make on these are simply unnecessary. Moreover, try not no take a poor purchasing decision such as buying unnecessary gifts, expensive bags or gadget for relatives. Always try to make other happy while staying within your limit. Start practicing this habit to spent worry free holidays.
3. Giving up credit card usage to earn points
One of the most attractive traps offered by credit card companies is that the more your use credit cards, the more pints you will earn for your future purchase. Most of people get tempted by these enticing features and use credit cards randomly to earn points. This is one of the most significant bad financial habits which results in less credit card debt. First of all, try to give up on your credit card usage. This can help you in lowering your expenditures and debt amount. Remember, rewards always inspire you to go for non stop spending. So, use credit card or cash for proper use only.
4. Plan the holidays in advance
It is very important for you to plan your holidays in advance. This helps you rush shopping and you can save money as well. If you plan your holidays in advance, you will be able to buy tickets in advance. If you buy tickets in advance, you may get those at comparatively lower prices. You will also get time to save cash for the holidays.
5. Make a list of the requirements in advance
You will have to determine what you will need for your vacation. Make a list of all the requirements. Gather all the items that you have decided to take along with you. However, if you don't have all the required items, you can borrow some from relatives and friends. Moreover, you will also get time to buy some items when possible if you plan the tour in advance as discussed in the above point.
6. Make a list of the gifts
You should also make a list of the gifts that you think you are going to give to your near and dear ones and your friends. Try to buy those things that are cheap but beautiful. You will able to find various pieces of trinkets or other small tokens bearing the name of the place you are visiting. These items are generally low cost but are great gifts too.
7. Buy travel insurance
You should also buy a travel insurance to avoid major post holidays financial woes. If you buy travel insurance, it can save you from debt. For example, if your flight gets cancelled due to some unknown reason, you may have to buy another set of tickets. In that case you may have to use your credit cards to buy the tickets. This can lead you to problem. However, if you have travel insurance, the insurance company will cover the costs of buying the tickets. Moreover, if you fall sick while travelling, the insurance company will pay for the medical costs. Thus, you won't have to use your credit cards for the medical emergencies and even if you use your cards to pay for the medical costs, you will be able to pay those off with the insurance money.
Try to set spending limits to maintain your expenditures as per the budget. Budget helps you to determine your affordability. Thus, if you want, you will be able to limit your expenditures during the vacation.