Setting Financial Boundaries During the Holiday Season
This year, people are experiencing more financial uncertainty than they have in the past. Businesses need to have a booming quarter in order to stay afloat. Individuals need to manage money without falling into a pattern of debt. As you balance the tension of supporting businesses and taking care of your financial well being, it is important that you go into the holiday season with a plan in place. Think through every aspect of your wealth, from savings to disposable income. From there, determine the boundaries that need to be set in place to keep you on track with your goals. In this article, we will share how you can create practical financial boundaries this holiday season.
Table of Contents
1. Setting Aside Savings
Even in the stressful winter months, make an effort to set savings aside. You can save any money that you receive as gifts from the people that you love. In addition, you can cut back on some of your spending to make more room to save. Although saving takes discipline, it is a great way to boost your confidence and your safety net. When you continue your healthy habits, you will feel confident in your ability to experience financial freedom. If you do not need any liquid money, you can invest in retirement accounts or stock portfolios. If you are unsure of how to manage a portfolio, look for assistance from the experts at Mountain West Wealth.
2. Getting Organized
Many people get to the end of the holiday season and do not know where their money went. From purchasing gifts to giving to charity, from attending parties to buying winter gear, it is hard to keep an organized list of where your money is going. Get organized this year by keeping a detailed track on where your money is being spent. You can choose to download a free app that attaches to your bank accounts and gives you the ability to categorize the funds that are being used.
3. Set Spending Limits
As you begin to organize your funds, set a budget of how much money you are comfortable spending throughout the month. What do you want to give to charity? What will you be spending on gifts? After you establish these numbers, do not let them change. Make sure to stick to these numbers even during the toughest days. If you need help staying accountable, transfer the money you have budgeted into your bank account. Commit to only using your debit card rather than your credit card to stay in order to stay on track. You could get cash out of the bank with the expectation that you will stop spending if the bills run out. Although these are strict guidelines, they will help reinforce your goals.
4. Have Accountability
Bring a loved one into your financial planning decisions. If your spouse or best friend knows your goals, they can make an effort to check-in and ensure that you are staying on track. If they see you continuing to make lavish purchasing decisions, they can ask to hear the progress that you are making.
Summary
This holiday season, do not let your financial goals get away from you. It is important that you can continue to save and budget so that you do not end the year discouraged and confused. By being confident in your ability to succeed financially, you will accomplish the goals that you established.
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