Spend smart this holiday season

Published 4:47 pm Wednesday, December 18, 2024

(StatePoint) — The holiday season may be warm, merry and bright, but it’s also a time when it’s all too easy to spend more than you plan to and rack up debt you can’t manage.

According to certified financial planner professionals, here’s how to celebrate the season in style while positioning yourself for a financially healthy 2025:

Create your budget

Look at your budget to determine how much you can earmark for holiday expenses. Do you need to cut back on any nonessential spending to afford the holiday season you desire? Make a comprehensive list of all your expected expenditures, including travel, hosting, decorating, gifting and charitable giving. Don’t have a budget? A CFP® professional can help you create one to stay on track with your financial goals during the holidays and beyond.

Stretch your budget

Stretch your holiday budget creatively. When shopping online or booking travel, find the best deals by using a browser extension that comparison shops. Entertaining? Rather than providing every dish yourself, host a cookie exchange or potluck. If you have a large extended family or circle of friends that holds a traditional gift exchange, suggest a Secret Santa or white elephant exchange instead.

Maintain your credit

While it’s fun to be extravagant and give big-ticket items that will wow your recipients, your holiday spending shouldn’t harm your credit. Keep an eye on your debt-to-credit ratio throughout the season and set reminders of when credit card payments are due. If you purchase an item using a Buy Now Pay Later plan, put payment due dates in your calendar to avoid late fees.

Give wisely

Many people make charitable contributions around the holidays. If you plan to give, do it in a way that offers a tax advantage. From deductions to donating appreciated assets to using a Donor Advised Fund, a CFP® professional can help you find a good strategy for you and the cause you care about.

Save all year

Diverting a small portion of each paycheck into a special savings fund year-round can help ensure you’re prepared to meet holiday expenses. Once this season wraps up, you can begin planning for next year. A CFP® professional can help you set this fund up and offer suggestions for maximizing these savings.

Make your resolutions now

Whether paying down debt or setting up a retirement fund, you don’t have to wait until the new year to make resolutions. Get a healthy money mindset now so that when January rolls around, you’ll have established habits to move you toward your goals.

Working with a financial advisor to prepare for the holidays can help ensure a stress-free season. Visit letsmakeaplan.org to find your CFP® professional, who is trained to offer comprehensive solutions for your unique situation.

Financial planning may not be top of mind during a season of festivities. However, smart spending habits can help you enter 2025 in the black.