Basic Finance

7 Effective Money Management Tips for this Christmas

Yes, it’s that time of the year again when we are expecting gifts from our family, friends, and “Santa” under our Christmas trees!

But this year, even the most dedicated Christmas planner feels stressed with financial and social pressures after limited festivities in 2020 due to Covid.

But don’t worry! In today’s blog, we will discuss specific steps that you can take to minimize Christmas stress and keep your costs down.

From different ways to save to why you should prioritize the important stuff this year, here are our top money management tips for this Christmas:

1. Make a list and check it twice!

We can easily get carried away at Christmas, buying presents as you see them in the shopping malls and then panicking at the last minute and buying more for our friends and families.

To prevent this, we must plan how much we can spend this year and then break this down into the items we have to devote money to, such as presents, food, and travel.

We can plan this by assigning a budget to each item that we need to buy and sticking to it for preventing financial stress around Christmas and beyond.

This will help us to do money management and also help us in prioritizing the things that are important to us and our family.

2. Buy Strategically!

For tempting us to spend even before Christmas, many retailers organize pre-Christmas sales, in which they slash the price of everything from toys to electronics.

So, look at your Christmas shopping list and think whether you should buy some items in sales that will help you save.

You should then look up the potential sale and mark them in your calendar to don’t forget.

However, just don’t get caught up in the excitement and end up overspending. It would help if you remembered to stick to the items on your list only and do some research before the sales start to determine the best price for that item.

You can also check if this is a good deal by running through a quick search online to see what price other retailers are selling the product before buying it.

3. Think different this year

This coronavirus pandemic has shown many people the importance of friends and family. But, unfortunately, due to complete lockdown, many people have also missed social interaction more than material possessions or habits like going to the gym.

So, don’t forget this and we can think differently about Christmas presents this year. We can plan a winter walk, get together, or just a day out with a friend rather than exchanging gifts.

We have also brushed up on our baking skills during the lockdown. If so, we can also whip up tasty homemade treats for friends and family for Christmas, such as cookies and cakes, rather than buying an impersonal present. What an excellent idea? Right?

If you have children, you can get them involved in homemade gifts. But, of course, we shouldn’t forget how lovely homemade cards and even wrapping paper are. So we can think of it as a family art session, which is also a budgeting one.

4. Don’t be afraid to talk about Money

If you wish to buy a gift for someone who always gives you one, then have a frank conversation this year about what you both can afford.

Both of you should not feel obliged to buy an expensive gift as you always receive one this year, so we suggest you stick to a budget and it may also make you both think more creatively.

Secret Santa!!! Yes, another option for family or friendship groups is to arrange for a Secret Santa at their workplace or home, allowing you to all spend a bit more on one person. 

But as we suggested, agree on a budget in advance and stick to it. This will help in your money management also.

5. Make some cash

If you like to arrange and clear your house ahead of Christmas, then take a look around for the items that you haven’t used since last year, even clothes that you’ve never worn or even for the unwanted gifts.

You can consider them selling if there are in good condition on a resale site and use the money to buy essentials for this Christmas.

Read more about Financial Planning from ELM School

6. Buy Bargain Gifts

It would help if you continually keep your eye out for offers on your favourite drinks in the run-up to Christmas at the supermarkets. But before buying it, remember to consult your budget and not go over it.

Some supermarkets usually run 25% off when you buy six bottles, which is always worth buying. Also, it would help if you kept an eye on bargain gifts as there are sales all over at the shopping malls. This will help you stay aligned with your budget.

7. Stick to home entertainment

We should remember that covid is not over, and we can celebrate at our home watching Christmas movies on Netflix or decorating our Christmas trees and making Christmas cookies. 

You can also spend Christmas by watching videos and taking up courses on the stock market at exciting Christmas offers which will help you in your investing journey!

Bottomline

We all know that it’s time to celebrate the last few days of the year with your friends and families, but also note that covid is not gone, and the pandemic is still here. So, rather than partying outside, celebrate this Christmas with your families and friends at home. We hope that you found this blog informative and will use the information to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.

For stock related queries visit web.stockedge.com

Merry Christmas!

Source
7 Effective Money Management Tips for this Christmas is written by Elearnmarkets for www.elearnmarkets.com

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