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When Should I Start Budgeting for the Holidays?

It is no secret that the holiday season tends to put a considerable strain on your wallet. If you have not budgeted and saved enough money up in time for the holidays, you may as well kiss your next few paychecks goodbye. However, if you start budgeting early, the stress of the holidays does not have to include financial stress.

The debt settlement lawyers at McCarthy Law know all too well the realities of being financially unprepared during the holiday season. Last year. About 31% of all American consumers went into debt to cover gifts, travel, or other holiday-related costs this past year. Do not fall victim to holiday debt. Start budgeting and be smart about your spending to keep your wallet happy while enjoying what is meant to be a joyous season.

Start Saving for the Holidays Now

While it may seem far off, there are only about five months from July to November, and then before you know it, you are trying to do all of your shopping on Black Friday. Even if you just put away $25 a week starting now, you would have about $700 saved up the week before Christmas!

One option is setting up an account specifically for holiday savings or an emergency fund that will automatically transfer a set amount of funds from your checking to the savings account so you can passively be stocking up. Do not worry about being unable to travel or purchase the gifts you want this year—be smart and save!

Easy Holiday Budgeting Tips

Saving is a great way to budget, but there is more to budgeting than just putting money away. To be successful at budgeting, the following tips will help make sure your money is saved with purpose and stays in the savings account until it needs to be spent.

Make a List of Gifts You Plan to Buy

Gifts tend to be the most expensive part of holiday spending. Getting a general idea of the gifts you plan to buy will help you budget properly. This is also great so that you can keep an eye out for any deals on those items.

Look for Deals

Speaking of deals, be on the lookout for deals on gifts, flights, and hotels. While there are many “holiday deals,” the deals that happen in the months before the holidays tend to be better.

Use Your Credit Card Sparingly

In general, it is good practice not to use your credit card too much. Using it for airline points or hotel travel points can be helpful in the long run, but when purchasing gifts, it is better to use the money you have in the bank. If you overuse your credit card, you can risk falling into debt or fall victim to high-interest rates that leave you owing more than you spent.

Declare a Spending Goal

Be realistic about your spending goal and stick to it. Having a goal to adhere to can help limit unneeded purchases or impulse buys. Your spending goal should include all holiday expenses, not just gifts.

Debt Resolution Lawyers Can Help with Your Holiday Debt

Sometimes, the holidays creep up on us, and things happen. If you find yourself swiping your credit card more than you intended to cover holiday expenses, you may be facing debt you cannot afford to pay off. If this is the case, you should seek out the services of a trusted debt resolution firm: McCarthy Law.

McCarthy Law specializes in debt resolution, always providing specialized case management when going up against the aggressive tactics of creditors. With low fees and high-quality service, get started on your journey to find a resolution for your debt by contacting us here or calling (855) 976-5777.

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Garrett F. Charity

Garrett F. Charity is Lead Attorney in the McCarthy Law PLC Los Angeles, California office and a member of the California Bar. He received his Bachelor of Arts Degree in Art History from Princeton University and his Juris Doctor Degree from Southwestern University School of Law where he was a recipient of the Schumacher Scholarship.