During a holiday, it is easy to overspend. The excitement of the time with family and friends can distract you from remembering your financial goals and can cause you to spend more than what is budgeted.
Although it is crucial to have down time and use this holiday weekend to unwind and relax, consider these tips to manage your weekend spending:
1. Remember it is just a weekend. Resist the urge to spend all the money you budgeted for entertainment on one weekend. There are 31 days in the month of July so that means you will need to spread out your entertainment money to last through the remaining days of the month.
2. Avoid credit cards. There is one saying that can help you avoid credit card disasters that you'll regret for months and maybe even years to come: "If you can't pay for it in cash, don’t buy it on credit." As simple as it seems, it is very effective to ensure that you avoid getting in over your head with credit card expenses this holiday.
· If you plan to use your credit card, ensure your bank account has at least 90 percent of the purchase total in available cash.
· Aim to settle your credit card bill on time and in full.
3. Be more prepared for the next holiday. Pay attention to your habits this weekend. Determine if you need to increase your entertainment budget to allow more spending for upcoming holidays. If you need to set aside money a few months in advance to allow more spending money, then make sure to include that in your budget each month.
Take the financial stress out of your holidays with proper planning. All it really takes is a little bit of discipline and staying true to your financial goals. As you enjoy the weekend, keep in mind what is most important to you. Do you want a fun but careless weekend that causes financial stress or a fun but careful weekend that assists you in the pursuit of financial freedom?
Remember your financial journey is what you make of it. You can use your budget as your blueprint to help you reach your goals or you can stray away from the budget and never reach your financial goals. The choice is yours. Have a safe holiday weekend.
Increasing Financial Awareness and Building Financial Stability