Holidays are a heavily commercialized season in the US. They last two months and leave the average American short by at least $1,000. The holidays will probably be in full swing or wreaking havoc on your budget by reading this.
FINRA Brokercheck Francisco Faraco recommends short- and long-term solutions for annual holiday expenses.
Count Every Expense
While people start saving months in advance for the holiday season, they often make the mistake of only accounting for gift-buying in the November and December budgets. Holiday shopping takes a toll on your expenses because you have to buy for others and yourself.
Account for everything in your budget, including:
- Thanksgiving dinner
- Gift purchases
- Holiday decorations
- Other dinners
- Potential travel expenses
- Hired rides/taxis
Count every last cent (and then some) to ensure you enjoy the festivities without sparing any expense. It’s best to start now, as preparation is key, and you only have so many days left until the holidays.
Keep Your Eyes Peeled for Promotions
Most people do their holiday shopping nice and early when the demand is low, and the supply is abundant. Even if you’ve somehow managed to miss these early opportunities, you don’t have to miss out on affordable holiday shopping altogether.
Now that Halloween is over, you might see pre-Black Friday sales go up everywhere. Capitalize on such discounts or wait for Black Friday sales and all the other discount events after that. You have until Super Saturday, the weekend before Christmas, to buy discounted presents and control holiday expenses.
Image Filename: Black-Friday
Image Alt Text: A Wooden Surface Featuring Several Banners with Black Friday Discounts
Take on More Work to Manage Your Budget
Holiday budgets are blessedly temporary, albeit unholily exorbitant. You can avoid drilling a hole into your savings by getting another job. Many seasonal gigs open up this time around. Apply for one to cover your estimated budget, maintain cash inflow, and avoid digging into your savings.
Dedicate a Portion of Your Income to Holiday Spending
People often divide their net income into essential and non-essential expenses and savings. You can further divide them into a fourth category: holiday spending. You might be thinking this will force you to tighten your purse strings. Francisco J. Faraco disagrees.
The CFA Charterholder believes any budget is achievable with the right financial advice. A former Morgan Stanley employee, Francisco Jose Faraco is a Teaching Assistant at the University of Chicago’s Financial Mathematics program and founder of Faraco Partners, LLC.
According to him, you can find an excellent consultant or consulting firm to manage your expenses, especially during this time of year, on FINRA BrokerCheck. This government-authorized search engine regulates and documents the positive and negative aspects of licensed broker-dealers.
Find an advisor who can help you dedicate a tiny portion every month to holiday spending, someone who can help you save for the holidays and your future.
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