Finance a Life Event

Checklist: Ways to Not Break Your Holiday Budget – And what you could do if you break your holiday budget

The fun and frenzy of the holidays could leave you financially frazzled. Saving money all year in a “Christmas account” at the bank may be the best way to budget for gifts and travel, but–let’s be realistic—not everyone does that, and even when we do, holiday budgets often get broken.

According to Financial Engines[1], an independent investment advisor firm, 30 percent of the 1,000 consumers they surveyed in broke their holiday budget last year and 21 percent predict they will go over their budget this year.

Holiday presents aren’t the only expenses. Travel for a family visit or the cost of hosting your friends and family are other common holiday costs. The following checklist can bring on a cheerful New Year instead of a post-holiday hangover.

Holiday Budgeting Tips:

If You Blow Your Holiday Budget…

You could consolidate debt with a personal loan. If you’ve overused your credit cards and store cards and are spending more on interest payments to creditors than on gifts for the people you love, a personal loan could be the best way to start the New Year. A personal loan can be used to consolidate debt into a fixed payment while lowering your interest costs.

If this year’s holiday spending isn’t as controlled as you’d like, start planning for next year by setting aside a little money each month in a special account so you’ll be ready when merrymaking season comes around again.

Curious what the average person spends on Christmas? Find out!

[1] https://financialengines.com/education-center/avoid-derailing-financial-goals-holidays/