Holiday Spending: Experts Urge Prioritization to Avoid Debt as costs Climb
As the holiday season approaches amid ongoing economic uncertainty,financial experts are advising consumers to proactively prioritize spending and embrace flexible budgeting to avoid accumulating debt.Rising costs for travel, gifts, and decorations are putting pressure on household finances, making mindful financial planning more critical than ever.
This year, staying debt-free requires a shift in mindset, focusing on what truly matters and building a budget that reflects personal values rather than rigid restrictions. According to Kimberly Palmer of NerdWallet, the key isn’t limiting spending, but intentionally choosing where to allocate resources. “It’s about what you’re saying yes to.Focus on the positives, the things you’re excited about this holiday season,” Palmer said.
The first step is identifying your holiday focus – whether that’s gifts, travel, or décor – and allocating resources accordingly. Palmer emphasizes the importance of versatility, acknowledging that unexpected costs can arise. “We don’t wont to feel bad or just feel guilty for spending as we’re all just trying to do our best,” she added,suggesting leaving “a little extra room in your budget for those mistakes.”
For those seeking structure, NerdWallet recommends the 50/30/20 budgeting method, dividing take-home pay into needs (50%), wants (30%), and savings or debt payments (20%). This approach can provide a framework for managing expenses and ensuring financial stability throughout the holiday season and beyond.
Source: The details and quotes come from an interview with Kimberly Palmer of NerdWallet. Additional details come from NerdWallet.
