For many people, the holiday season means good times with loved ones. It also means they have the opportunity to purchase gifts for those special people in their life.
There is no denying that the holiday season is a time for giving. That being said, you don’t want to go overboard with how much money you are spending. If you do, you could find yourself in debt after the holiday season has come and gone. Fortunately, there are things you can do to stay debt free. Even though you may think the only way of doing this is to cancel the holidays altogether, nothing could be further from the truth.
Don’t Use Credit Cards
The use of credit cards is the quickest way to find yourself in debt this holiday season. As tempting as it may be to pull out your plastic every time you visit the mall, you have to fight this urge. Rather than rely on credit cards, take as much cash with you as you are willing to spend.
When the money is gone it is gone for good. You may look back and wonder why you spent so much, but this is a much better feeling than a large credit card bill staring you in the face.
Set a Budget for Spending
It is one thing to say you are going to set a budget, but another thing to actually sit down and make this happen. When the time comes to set a budget, you will want to start by making a list of the people you need to purchase a gift for. From there, decide on a final number for how much you want to spend.
To ensure that you don’t bust through your budget, be careful as you spend your allotted amount of cash. If you have 10 people on your list, for example, you need to make your money last.
Track Everything
This goes along with setting a budget. When you track your spending, it is easier to remain debt free. On top of this, it is easier to avoid spending all your money before you purchase a gift for everyone.
If you are going to use a credit card, promise yourself that you will do two things: pay the bill off in full and track every dollar that you spend. It is people who neglect to track their spending who find themselves in a bad spot when their credit card bill arrives. They think they only spent a few hundred dollars, but when the bill arrives they are knocked off their feet.
Suggest a Grab Bag
Do you have a large family? Are you finding it difficult to afford a gift for everybody without going into debt? This is the perfect time to suggest a grab bag.
Many people shy away from this because they think it makes them look cheap. This is not true. In fact, many others in your family are probably thinking the same thing. You need to be the person who has the guts to suggest it first. Chances are that others will thank you soon enough.
Make your Own Gifts
Racking up debt during the holiday season often times happens when you attempt to purchase gifts you cannot afford. For one reason or the next, you think the recipient of the gift will only enjoy it if you spend a lot. Remember this saying: it is the thought that counts.
Even if you don’t have a creative bone in your body, you can make your own gifts. There are online tutorials that can point you in the right direction.
The Time is Now
With the holiday season rapidly approaching, you need to devise a strategy for staying debt free. Don’t put yourself in a bad financial position this year. Instead, make a plan for avoiding debt and follow through with it.
To ensure that you don’t forget, let’s take one final look at the five tips detailed above:
- Don’t Use Credit Cards
- Set a Budget for Spending
- Track Everything
- Suggest a Grab Bag
- Make your Own Gifts
