Why Budgeting Should be a Part of Your Holiday Planning
Useful Tips to Avoid Going Broke after the Holidays

November 23, 2022 | by HC Mutual

Christmas is fast approaching. As early as now, Filipinos are starting to brace themselves for the happiest and busiest time of the year. Parties, events, and celebrations are filling up your calendar, and now that COVID-19 restrictions have loosened compared to the previous years, it goes without saying that Filipinos are bound to go all out.

Quick reality check: planning and attending this series of festivities entails bigger expenses. While it’s a given that food, gifts, and travel are anticipated costs, there will be unexpected expenses that might hurt your wallet. Given today’s economy, it’s much wiser to plan your holiday spending in advance, so that you can fully enjoy the season without risking financial security.

While making the most out of the season is your priority, it’s also important to consider what happens next. If you overindulge, there’s a good chance you’re sacrificing your financial stability for the following year. You don’t want to welcome 2023 with unpaid bills, do you?

To help you achieve stress-free holiday spending, here are some budgeting tips:
1. Take advantage of the best holiday deals as early as now.
 

It’s true that during this season, temptations are in every corner of the real and digital world. Brands and businesses come up with their own ways to get you to buy something from them. Flash sales, holiday contests, and product bundles line up to capture the attention of eager-to-spend Filipinos.

With proper financial planning, you can take advantage of this endless arrival of holiday deals. You’ll enjoy more flexibility when you go out to shop. You can decide which sales promos provide more value for your money. With no pressure to spend just because time is running out, you’ll walk out of the mall feeling satisfied with the decisions you’ve made.

2. Create a list of expenses to monitor your budget.
 

Christmas is the most wonderful time of the year. For some, it can also be a stressful one, because you get twice as many of your usual commitments. There are financial decisions you have to make here and there, and it can definitely take the fun out of the season.

Building a holiday-specific budget lets you make your potential purchases more predictable. By creating a list of expenses and categorizing them according to importance, you’ll have a solid plan as to how you and your family can ensure enjoyment without being caught off-guard, money-wise.

3. Spend responsibly using the 50-30-20 rule.
 

A realistic holiday budget lets you know if you’re on the brink of overspending. It allows you to track your purchases, thus preventing you from damaging your savings. It’s important to remember that the Christmas season only lasts for a while. Sooner or later, the holiday decorations will be taken down, Christmas carols will stop playing, and everyone will go back to their usual routine.

If you’re looking for ways to spend responsibly, the 50-30-20 rule is a surefire way to build a budget that goes far beyond the holidays. This easy and efficient budgeting method divides your income into categories: 50% for needs, 30% for wants, and 20% for debt payment and savings.

And if you have yet to acquire a savings plan, HC Mutual provides fast, affordable, and hassle-free financial services that help you save money effectively and sustainably. Through its 5ave Up! program, you can build disciplined savings, and be on your way to the life you deserve.

Save up and earn big for that dream house, dream vacation, or dream purchase with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan

Everyone expects this Christmas to be merrier than the previous ones. Throughout the season, you might find yourself itching to spend excessively. Let your priorities be your guide. Start a budget and be wise in your spending decisions.

Merry Christmas, everyone!

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