Christmas is typically a very exciting time for most people, filled with family, holiday parties, gifts and good cheer. However, Christmas can also be a very stressful time because of the financial obligations resulting from the holiday. The Christmas holiday typically leaves many people spending more money than they anticipated or could afford. It also leaves people with credit card bills that they will be unable to pay in a reasonable amount of time. There are many ways to avoid or minimize the affects of Christmas spending. Many of the tips below will help to avoid the overspending that many people deal with.
Budget Money Monthly
Putting away money throughout the year will help to minimize the financial burden that you will feel immediately after the holidays. By saving as little as $25 a paycheck it will leave you with $600 of holiday spending cash. This is a lot of money that will not find its way on to your credit cards where it will be gaining interest every month. It will also prevent huge credit card bills entering the New Year.
Purchase Gifts Throughout the Year
Another way to avoid over-spending during the holiday is to purchase gifts throughout the year. By purchasing gifts throughout the year, you are able to spread out your spending and also take advantage of sales and special offers that arise at different times throughout the year. Although many people want specialized gifts or specific items, there are always opportunities to buy meaningful gifts throughout the year for less than they would cost around the holiday season.
Cook or Make Gifts
Gifts do not always have to have labels or cost money. A good way to show people you care is by spending time baking or crafting gifts. This is an excellent way to cut down on spending as well. Cookies, cakes and other baked gifts always make excellent gifts and show that you care. Another great gift is handmade scarves, hats, and pictures. All of these items show how much you care because you spent the time to make a gift for your loved one. It also will save you a lot of money by avoiding having to purchase these expensive items at the store.
Set Limits
Before the holidays start, it is best to sit down and decide what you can afford to spend. By setting limits, you will ensure that you do not over-obligate yourself into spending money that you can not afford. This is the best way to make sure you do not make purchases that you will be paying for the rest of the year. If you have purchased gifts throughout the year, you will find you do not have as many gifts remaining to purchase.
Leave the Credit Cards at Home
When you do your holiday shopping, leave your credit cards at home. Christmas is a time of impulsive purchases. If you do not have your credit cards with you, it will force you to think about each purchase before you come back to make it. This will allow you to make sure that this is a purchase that you want to make without succumbing to the "heat of the moment". This will help to curtail holiday spending that you may regret later.
Conclusion
Hopefully, these suggestions will help to ensure that you do not overspend or obligate yourself to holiday purchases that you will regret later. By spending cash and minimizing your big purchases, it can ensure that you have a healthy financial situation heading into the New Year.
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