Financial stress during the holidays

COLUMBIA, S.C. (WOLO) – It’s the most wonderful time of the year and it is also the most stressful for some people financially. 

Keeping a budget can be hard especially during the holidays with gifts and traveling. Michele Josey is local financial coach with Mogul Beginnings, she says the biggest mistake made is people do not keep track of how much they are spending. She advises her clients to set a budget early and stick to it.

“Come up with a number with your family and say this is what we’re going to do. That means all the gifts and all the traveling we do is going to be predicated on that number. So maybe that means you can’t buy that $500 gift this year but you can buy that $100 gift that still has meaning and significance to a person,” said Josey. 

If you choose to take the risk of getting in debt this holiday season, know that there are consequences. Josey says it can especially hurt those who have unexpected financial emergencies or have a goal of one day buying a home.  She says debt also makes you look less attractive to lenders. “Because not only do they look at your credit score. They actually look at your credit history and actual numbers, they see the late payments, they see the missed payments.“

If you find yourself already burdened down with holiday spending, Michelle says with the proper steps you can recover. 

“Finances are a very touchy subject for most people and people want to come and know they feel safe and not judged for their decisions. So one thing I stress the first time we meet is take a deep breath, forgive yourself. It’s okay, we’re going to make good decisions moving forward. We can’t change the past but we can change the future and you can make it a better future for yourself and your family,” said Josey.