Financial expert shares tips for holiday spending without breaking the bank

The holiday season brings joy and celebration, but it can also bring financial stress. Financial expert Jay McGowan from The Welch Group shared strategies for enjoying the holidays without overspending.

McGowan emphasized the importance of planning and creating budgets for the various holiday expenses.

“You’ve got a lot going on this time of year. You’ve got presents, you’ve got travel, you’ve got meals, big meals that you’re preparing,” McGowan said. “So there are a lot of components, and you can’t do everything to the full extent. You have to make decisions on what to do.”

Budget early and use available tools

McGowan recommended starting holiday planning early, especially for travel expenses that increase during peak season.

“If you book a plane ticket now versus back in May or June, it’s probably a little bit different in price,” he said.

He suggested using budgeting apps and tools to track multiple holiday expenses, noting that many people benefit from external help managing the various costs.

Take advantage of sales but avoid impulse purchases

Holiday sales events like Black Friday and Cyber Monday can provide savings opportunities, McGowan said. He recommended preparing in advance and using apps to find deals online.

However, he cautioned against impulse buying, referencing the 24-hour rule for significant purchases.

“You’re going to be inundated with things to buy, purchases from all different angles,” McGowan said. “If you really want something and it’s significant, sleep on it, think about it, does it fit into the budget?”

Be cautious with credit and payment plans

McGowan warned about the risks of using credit cards and buy-now-pay-later services during the holidays.

“Using debt to make purchases isn’t inherently a bad thing. But always, if you’re buying, if you’re using credit to buy something, always do that knowing that you can pay it off,” he said.

He advised against opening store credit cards just for discounts if buyers cannot afford to pay off the purchases, as interest charges can outweigh any initial savings.

McGowan recommended tracking spending throughout the holiday season rather than waiting until January to assess financial damage.

“Don’t go through the whole holiday season and just say, well, we’ll figure it out in January,” he said. “Keep your eye on the ball throughout this time period.”