The Top 2 Ways To Keep Your Finances On Track During The Holidays

William Miller |

This time of the year is my personal favorite. It’s a time to spend with family, enjoy the snow and eat some great food but the reason it’s my favorite is the presents!

As good as receiving presents is, giving presents can be just as great. The reaction and expressions people have when you give them a present that is personal is priceless. One common issue that we see around the holidays is that your finances can get off track.

Today we are breaking down how you can have an amazing holiday season and not hurt your financial situation 👇.

1. Make a Holiday Budget

We have talked about the importance of budgeting before but as a recap, I don’t think you should plan every cent you are going to spend each month. Rather you should know what is coming in (income) compared to what is going out (expenses). You should do the same thing during the holidays 🤯.

The major difference is that these expenses will not be recurring, rather will happen just once per year… that doesn't mean they can't knock you off your financial goals.


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The expected average holiday spending in 2022 will reach $832 per person! While at the same time 56% of Americans can’t cover a $1,000 emergency expense.

Making a budget that you stick to for gifts, travel and food will help you not overspend during the holiday season.

2. Be Careful With Your Credit Card

Credit cards can be a great tool but can also become a nightmare if they are misused!



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If you are planning to use your credit card for purchasing gifts for the cash back/rewards and plan to pay the statement off at the end of the month, awesome!


If you are going to use your credit card because you don’t have the money right now to get a gift, you might want to reconsider. The average credit card has an interest rate of 16.27%. So that $1,000 you put on your credit card can cost you.

If you pay off the $1,000 in (assuming the 16.27% interest rate):

  • 3 months you would pay a total of $27 in interest
  • 12 months you would pay a total of $90 in interest

The longer it takes you to pay off the debt ➡️the more interest you will have to pay and you might be in the same situation next year.

Final Thoughts

  1. Have a plan for what you want to get as gifts. Being able to budget the cost will get rid of some of the holiday stress.
  2. Make sure you utilize your credit cards properly. You don’t want to overspend on them and be paying the price later.
  3. Enjoy the holidays and the time with your loved ones!


*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax, legal, or investment advice and may not be relied on for purposes of avoiding any federal tax penalties. Individuals are encouraged to seek advice from their accountant, financial planner, and counsel. Neither the information presented, nor any opinion expressed constitutes a representation by WM Wealth Planning as a specific recommendation to the purchase or sale of any securities/investment. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by WM Wealth Planning for educational purposes*­­­