wealthofgeeks.com

How to Manage Your Finances Better During Festive Times

There's no denying that the holidays are one of the most expensive times of the year. But with proper planning, you can prepare for these expenses and avoid reaching further into your pockets this winter.

In this article, we'll share seven simple finance management tips to help you stay on track and avoid taking on debt during the holiday festivities.

Not sure where to start? Follow the 50/30/20 rule, where you allocate 50% of every paycheck towards necessities, 30% toward discretionary items (like holiday purchases), and at least 20% to your savings.

Create a budget

If you're not careful, it's easy to let your spending get out of control — and then you find yourself biting off more than you can chew. But if you track every single penny of where you are spending your money, you're more likely to stick to your preset budget.

Track your spending

These days, there are a variety of credit cards on the market that offer excellent credit card rewards programs, like the Chase Sapphire Reserve for travel and the American Express Blue Cash Preferred Card for cash back.

Maximize rewards and perks

If you wake up the next day with a desire to pull the trigger on the purchase and it fits within your budget, it's a shoo-in. But if you wake up and don't remember the item at all, then it's meant to be left as is.

Avoid impulse purchases

You can always apply for a second job, like delivering packages for UPS during the busy holiday rush. Or you can take a more entrepreneurial path and start a side hustle that generates income long after the holidays.

Start a side hustle to earn extra money

If you're unsure you can pay for an item on the fixed schedule, think twice about using a BNPL plan. If you opt for it, review the terms and conditions to understand when your payments are due and how much late fees or interest could add up.

Avoid buy now, pay later options

Swipe up to learn more!

20 Home Cleaning Hacks Professionals Don’t Want You to Know

10 Money-saving Hacks To Cut Your Travel Cost

Discover  more from  wealthofgeeks.com