Here’s Your Quick Guide to Financial Planning for the Holidays

1. Put money aside as early as July
   
   Setting money aside as early even before the “ber” months roll in will guarantee financial flexibility when the holidays actually arrive. Your monthly bills, daily spending habits, and unexpected emergencies may can it hard for you to acquire a decent sum of money if you start saving later.
   
   Consider the trips you’ve planned, the gifts you need to buy, and the parties you need to fund. Keeping all of these at the top of your head will help create a budget plan for the months to come. If you want to have a structured method of managing your finances, a savings plan such as the 52-week challenge will give you a step-by-step process to follow.
   
   Read more: Top 5 Budgeting Techniques to Help You Save More Money
   
   
2. Set a limit when shopping
   
   Christmas time always comes with mall sales. It may be tempting to splurge on clothes, gadgets, and appliances when they’re 50% off, but you will be quickly draining your savings if you purchase things impulsively. You need to stay disciplined by setting a limit, especially if you’re a frequent credit card user.
   
   If you really feel the urge to buy, make it a point to follow the three-day rule. New and flashy products may look good at first glance, so waiting for a few days to pass will let you shop without being swayed by your emotions.
   
   Take the time to collect discount coupons and gift vouchers, as well. Your favorite fashion outlets and buffets are likely to be generous at this time, so be on the lookout for great deals and freebies.
   
   
3. Decide on who you'll be sending gifts to
   
   It’s good to be generous, but you don’t need to give something to every single person you know. Buying gifts for your immediate family already costs a lot, and including your ex-officemate or your sister’s best friend in your shopping list can dent your savings even more.
   
   To curb your expenses, list down the people you want to give a gift to, but prioritize. This way, you can save a lot of money while making those closest to you feel special. It’ll also be easier to trim down the list and save more money by giving simpler gifts such as fragrant candles and special soaps to those who are perhaps your least priority.
   
   
4. Spend on healthier alternatives
   
   Eating healthy tends to take a back seat during Noche Buena. You may have a reason to celebrate with good food, but excessive consumption of sugar, alcohol, and cholesterol can put you at risk of hefty medical bills.
   
   Spending on healthier alternatives can be beneficial in many ways. Choosing lean meats over lechon can help you save a lot of money while paving the way for a healthier body. If you want to have a bigger safety net, health insurance plans such as the Critical Care 100 can give you more flexibility when faced with a medical emergency.
   
   
5. Find ways to trim down your household related expenses
   
   Other than finding ways to increase your income, you should also trim down your household expenses. Christmas lights will definitely bring the holiday cheer, but it will also spike up your electricity bill. Groceries may have “Buy 1 Get 2” promos, but you may end up spending more than what you need to.
   
   Using a basket instead of a cart and opting for electricity-free decorations can make a huge difference.
   
   
6. Think of time as money
   
   If you have a knack for baking cookies, now’s a pretty good time to put those skills to good use. Instead of using the money to buy gifts, why not spend a few hours of your Sunday to make presents?
   
   Something you made can be just as special as something you’ve bought. A handcrafted present will show the recipient that you went the extra mile to make them happy. To get you started, here are some DIY gift ideas you can follow.

Happy Holidays

Keeping these tips in mind will let you celebrate a merrier Christmas and spend the holiday season with maximum joy and comfort. Take a step towards a healthier, longer, and better life this 2020 by being financially prepared.

For financial consultations or health insurance plans, talk to a Bancassurance Sales Executive at any of the 900 BPI branches nationwide.