Smart Ways in Skipping Holiday Debt
It can be common for most people to spend a little more during the holidays. This can be normal as more money is needed to pay for the food, drinks and the gifts. However, it is unacceptable for anyone to spend beyond their means even if they are celebrating the holidays. Afterwards, your problem will be in fixing your finances.
In order to avoid a financial crisis after the holidays, you have to learn how to avoid incurring too much debt and spending too much.
From the start of the year (meaning months before the long holidays), you already need to start saving. As long as you were able to prepare for the expenses that you are going to make, you can be good even after spending a significant amount. Try to put aside a small amount every time your paycheck arrives. Avoid spending on items that are not really essential for your everyday tasks. Buying items that you don’t need or won’t really use will only waste your money.
Make a list of your “to-buy” things. You have to stick to your list. And when you are making a list, already assign for every item a price that you will be willing to spend. If you can’t find the exact item, try to substitute with another item that costs similarly to the original one. Take care not to go over your budget. Even a few dollars of difference in the prices can already accumulate to a significant expense. In addition, making a list allows you to think of the most appropriate gift for another person. You will have time to think of the pros and cons and consider the possible preferences of the other person.
When assigning what gifts you will give to a person, avoid thinking of buying expensive items. It is always true that when it comes to gifts, it is the thought that counts. It can be a very cheap item. But if it is special, unique and meaningful to a person, the gift will be very much appreciated.
You may also get your gifts and other holiday items from lay-away stores. This will help you avoid accumulating debt at a very short time. You may be able to set a payment schedule that will make it comfortable for you to have. This will space out the amount that you have to pay on those dates that you have specified.
When you are faced with the task of buying gifts for your family and friends, avoid buying similar items for yourself. For example, if you want to buy a perfume for your mom, you should avoid buying another bottle for yourself. Chances are you don’t really need an extra bottle of perfume as you already have yours.
Another shopping tip will be to bring only the exact amount that you have planned to spend. Bring cash and avoid bringing your credit card with you. When you have no other choice but to stick to your budget, you will never incur holiday debts.