Brits spend most of their yearly savings and earnings on the latter part of the year. Halloween and Christmas celebrations mark most of the individual’s budget. Moreover, with sugar prices rising, customers may spend around 3.6 billion on candies this year. It is 14% higher than the last year.
Halloween expenses may reach over £1billion this year. Out of which, around 56% of Brits plan to purchase a big-ticket item. Moreover, Gen Z is the biggest spenders this year. So, you may exceed the budget this Halloween.
If you want to avoid nasty financial surprises, you must know the pitfalls to avoid.
What financial pitfalls you must look for this Halloween season?
When next time would you be able to dress like your favourite Halloween character and consume chocolates?
Probably the next year! It is the reason individuals want to celebrate the occasion; it has its brightest vibe. However, not keeping track of money may soon leave you with a series of debts. You must take active steps to avoid spending a fortune on Halloween:
1) Missing credit card payments
Juggling through the Christmas and Halloween preparations, credit card payments may skip your mind. Eventually, it could make it challenging for you to request an extra credit limit or get a better rate on loans.
Avoid this by setting up automatic payment schedules for credit cards. It would help you pay the bills timely and avoid late fees. If you believe the expenses will leave nothing by the month’s end, set up a separate debit account. Keep minimal balance in there.
Well, you can pay a minimal amount per month, but try to pay in full. Why? It is because you may end up paying more in the long term. Thus, do so only if you have limited financial flexibility.
2) Not reviewing your savings
Savings rates are rising and may rise more in the upcoming months. Thus, you must review your savings before spending. Well, high savings interest rates are not good news from the tax profits. It implies savings beyond £1000 share tax implications. Thus, it may leave you with more liabilities.
By reviewing your savings and tax implications, you would know the ideal amount you would have to spend. It will help you decide on a budget for the occasion. It would help you avoid spending more than you can afford and ending up in debt later. Most individuals save only for the occasion and tend to spend all by the December end. No, it is the greatest financial mistake. Ensure disciplined savings and spending throughout.
However, the scenario may differ with unemployed individuals. They have low savings and want to keep it for essential costs. If you are jobless but want to relish the occasion with children and family, instant benefit loans can help. You can get instant cash to finance your short-term Halloween preparations. No, it won’t burden your finances.
3) Shopping online from random platforms
It is one of the costliest financial blunders one commits. Instead of capitalising on the discounted deal, most people lose money to scammers. A thousand websites are offering or pretending to sell items at unbelievable prices. And most of all, some websites trick customers into investing for 100% investment results. And it never happens.
Thus, gauge the authenticity of the shopping platform before making an online purchase. Check whether the payment gateways are authentic. Does the site have SSL? Read the terms and conditions of using the platform and transaction rules. If you feel something suspicious, bounce back. Moreover, compare the price of the product before buying it there. If it is unrealistically cheap, it’s a trap.
To avoid losing all your money, do the following things:
- Check the address mentioned on the website (does it exist?)
- Check the spelling and grammar on the platform
- Read the reviews about the product, delivery, and customer experience
- Check if you land on an entirely different page by clicking a product. If yes, it’s a trap.
4) Not shopping around for the best insurance
It is another blunder that an individual commits before Halloween and the following occasions. One must explore the best insurance covers to insure their Halloween celebrations. Yes, covers like that exist. You can use the comparison websites and contact the insurance company you find suitable for your finances.
According to an Insurance manager, “Shopping around could help you cut insurance bills. The policy you choose should reflect your needs the best.”
Thus, analyse the premiums you could manage after evaluating the potential troubles you may experience during celebrations.
It would help you ensure a sigh of relief. If anything goes wrong, your insurance company may cover it up. It is one of the potential investments that one must make before the occasion.
If you find the best insurance cover with affordable premiums, lock it immediately. Most individuals panic even after finding the best policy as they fear missing the payment.
Furthermore, missing premiums increase the next premium costs. It could be a recent post-graduate or a low-earning individual. In that case, you can pay the insurance premium using joint loans for bad credit scores. Yes, you may enter the loan agreement with a blood bond that you share a cordial relationship with.
It can be your father, mother, wife, husband, sister, etc. It would help you finance the premium without attracting penalties.
5) Last-minute shopping instincts/panic
Most individuals, preoccupied between professional and personal hemispheres, often delay the shipping until the last minute. No, it is not cool, but it can ruin your bank balance. It is because one lacks the time to plan for last-minute shopping. Thus, one buys more than what he would have earlier. You may spend around 60% more than shopping early. Avoid shopping at the last minute.
Create a shopping list whenever you get time. It is ideal to begin it 2 months before the Halloween. However, you can do it now as well. Write the things you need for celebrations every day. Keep the list in a visible place. It would help you add things and shop early.
Bottom line:
Did you relate to most of the things/habits mentioned above? Well, you must avoid these at every cost. Otherwise, it may hinder financial growth and lead to an eternal debt trap. Things like setting up a budget, making a shopping list, and insurance are healthy ways to prepare for Halloween. It is approaching soon. Are you all set for the spooky bang?
Jessica William operates as a Senior Consultant and Chief Content Editor for 10 years at 1Onefinance. She assists the firm in getting a grip on the new lending laws and regulations. She does so by researching the trends, consumer requirements, and new audience preferences. Jessica is responsible for making important financial and administrative decisions.
Apart from helping consumers with the best solutions, Jessica Williams helps them ensure financial stability. She analyse the business data, finances, expenses, and revenue/ income of customers and determines necessary changes. Jessica finished her Doctorate in finance and law and implements her knowledge to the best interest of the firm and customers.
