The holiday season and rising debt can magnify financial stress, especially if you don’t have concrete steps to combat it. People feel the pinch of rising inflation and interest rates during the holiday season when household spending is higher than usual. When the holidays come around, you may want to entertain.
How to cope with holiday stress
Financial stress can be reduced or even eliminated by getting ahead of the problem – as much as possible, given the often high emotions involved. The holiday season can be a time of stress, so take the following steps to make it more peaceful. Prepare yourself with some common sense. It is said that fortune favors the prepared when it comes to financial wellness.
Set a budget
It’s not surprising that the first tip on every expert’s list is important. Make a budget and stick to it. Once you establish your budget, you can set aside those funds, or start saving, so that you don’t have to dip into your emergency savings.
It might already be too late to save for the holidays if you haven’t already started. If that’s the case, you should create a list of people you need to shop for as well as a price range and a gift idea for each person.
Start early and seek out sales
You might have a bad year if you are a last-minute shopper. You might have to spend more than you planned on buying the gifts you want. It’s easier to find the best deals and save more money if you start planning early. It’s not only Black Friday when you can find savings; retailers run sales all throughout the holiday season.
Set online price alerts so you’ll be notified if a price decrease occurs for an item on your shopping list.
It is common for people to avoid financial issues when worried, but continue to spend excessively and hope that everything will be okay in the end.
Inform family and friends
Make sure your family and friends know what your money mindset is during the holidays. Don’t be afraid to tell people you won’t be doing presents or hosting a meal if it means you can’t host. You will be able to avoid disappointments and unfulfilled expectations in this way.
Take advantage of quality time with family and friends. You might be tempted to get caught up in materialism during the holidays, but avoid it. Take the family to a movie or play a board game instead. Instead of spending money at the mall on gifts that you don’t think people will appreciate, spend time with the people you love.
De-stress your financial future
Our lives are full of stressful moments throughout the year, not only during the holidays. Things can be put into perspective when a family member is ill, injured, or dies. In spite of the fact that contemplating these things is not pleasant, it’s better to make plans in advance to make them less stressful in the future. Talking about long-term care, estate planning, and gifting assets with your loved ones during the holidays can be a good idea.
We are approaching the New Year, so maybe it’s time to start thinking about financial goals that you can turn into meaningful resolutions. Perhaps it’s time to begin saving for retirement, paying off high-interest debts, or building an emergency fund. The more you accomplish this holiday season, the less stress you will experience financially in the future!
Your presence is your best gift
The purpose of money is simply to get you where you want to go. Hopefully, these tips will help you simplify and focus on what really matters this holiday season. Happy Holidays!