Over the past year, many consumers have taken a more conservative approach to vacation spending, and that’s understandable. Back then, the economy was in a much darker situation than it is today and unemployment was still rampant. Additionally, health issues may have prevented some people from seeing loved ones and spending more money on gifts and celebrations.
This year, consumers might be eager to get back into the holiday spirit, and for some, that could mean increasing their spending budgets. In a recent Discover the survey, 26% of those polled said they expected to spend more money on holidays this year than they did in 2020. This feeling is particularly strong among younger generations, with 44% of Gen Z and 33% of millennials say they will increase their spending this year.
If you plan to spend more during the 2021 holiday season than in the past, it’s important to do so without going into debt in the process. Here’s how to do it.
1. Make a budget in advance
Budgeting for vacations could help you avoid running into debt as your expenses increase. Take a look at how much money you have in savings and how much money is left in your next paychecks. From there, figure out how much you can spend without having to carry a balance on your credit cards.
2. Reduce non-vacation expenses
The holidays don’t last forever, and after what may have been a dreary 2020 holiday season, you might just want to do it all this year. If you want to spend more and avoid getting into debt, you may need to cut back on your other spending to make this possible.
Take a look at your recurring bills and see if there are any that you can temporarily reduce. You may decide that it’s worth not ordering takeout twice a week and diverting those funds to holiday gifts and decorations.
3. Increase your income with a secondary activity
The holidays are a popular time for shopping, which means many retailers need seasonal help to meet consumer demand. If you want the flexibility to spend more money on vacation this year, it helps to see what seasonal vacancies are available in your neighborhood. If you are able to work evenings or weekends, you can use your extra income to boost your bank account and make the holidays more special.
Holidays are also a popular time to travel. If you live near an airport, you might well work for a local taxi service or sign up to drive for a transportation company like Uber or Lyft.
There’s nothing wrong with wanting to make this year’s holiday season as magical as possible, even if it means spending more money in the process. The key, however, is to avoid going into debt. If you budget, cut some existing bills, and increase your income, you could put yourself in a great position to celebrate the holidays the way you want without any negative financial consequences.