How are planning on dealing with the “extra” that December brings?

This time of year can be very demanding on your bank account.

You’re buying Christmas gifts, preparing for holidays plus dealing with increasing mortgage rates and increased cost of living. It’s a lot. It’s a lot extra when “normal” might already be a lot right now.

So how do you manage it?

By doing exactly that – managing it rather than it managing you.

My tips are, as always, to create a spending plan.

First up are the essentials – mortgage/rent, bills, groceries, entertainment, savings – the things that must be paid.

Next up are gifts and holidays. Who are you buying for and what’s your budget for each person? Can you reduce that by $10/10%/anything? Can you gift experiences that can be used during the holidays that would usually be an extra out of your pocket? Can you give something thoughtful rather than expensive?

With the kids in my extended family, we usually have a $50 limit but this year we’ve all agreed to only spend $30 on each child because we’re all feeling the pinch. And I think we all gave a collective breath out when it was agreed to reduce the spend.

If you’re going on holidays or planning summer activities, is there a way you can reduce that cost? Go somewhere cheaper? Find a better deal?

This time of year is about fun, relaxing and enjoying family and friends. Don’t ruin it with financial stress. Take charge and put plans in place now.