The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
‘Tis the season for tons of spending! While the holidays are hallmarked as a time for spreading love and joy, they are also notoriously expensive. While Black Friday sales might make you think you’re getting the best deals of the year, your spending can add up quickly if you aren’t careful. Is it possible to spread holiday cheer without completely breaking the bank? Follow these tips to help avoid debt this holiday season and head into the new year with your financial goals intact.
The holidays shouldn’t be stressful–at least not financially–and with proper planning, it doesn’t have to be. To best prepare for the season, track your current spending and try to rein in any excess expenses, like eating out, expensive coffees or other nonessential activities. Take a look at your financial situation and consider paying down any existing debt. All of this will help you determine how much you can comfortably spend this holiday season.
When it comes to creating a realistic budget, it’s important that you account for all potential holiday expenses, not just the gifts. Make a list that accounts for the finishing touches, like wrapping paper, bows and boxes. If you’re planning to host a dinner, you’ll need to factor in how much it’ll cost to feed each guest. Feel free to overestimate slightly. You can put any extra cash you have at the end of the season toward next year’s holiday fund. By planning early for all expected expenses, you can confidently create your budgeting strategy.
It’s never too early to start saving! Once you have a ballpark number of how much the holidays will cost, the next step is figuring out your savings plan. To manage financial stress, consider starting your holiday fund as soon as possible. If you set aside just $50 a month for a year, you’d have $600 to put toward your budget. Waiting until December to think about the holidays may lead to a hefty credit card bill in the new year, and no one wants to have to pay off the holidays with interest.
To help pull off a debt-free holiday season, keep your eyes peeled for sales and bargains. The holiday sales season typically starts in November. By shopping early, you can spread your costs over a longer period of time, which will put less stress on your budget. To avoid overspending, it’s best to steer clear of last-minute shopping.
Additionally, essentials are typically cheaper once the holidays are over. This makes it the perfect time to stock up on items like lights, wrapping paper and holiday-themed decor. You’ll thank yourself for the savings for next season.
One of the easiest ways to start your holiday shopping early is by shopping online. It’s also the best way to compare prices, read customer reviews and scope out product ratings. Retailers often offer additional discounts for shopping online, meaning you could walk away with cheaper presents online than you would if you went to a brick-and-mortar store to buy them.
If you do decide to battle the Black Friday crowds, have a plan in place for where you’ll shop and what you’re looking to buy. It’s easy for holiday spending to add up–especially when everything costs less to begin with. To resist any instant gratification temptation, consider leaving the credit cards at home and only using cash from the money you saved. Remember, the point is to avoid excess spending whenever possible.
Have you ever heard the phrase “less is more”? To save some money on gift giving, listen to your friends and family and file away any gift ideas they may sprinkle into conversations. Sometimes, a smaller, more meaningful gift is more thoughtful than a larger, more expensive one. To personalize your gifts further, consider baking a tin of someone’s favorite baked goods or hand painting a gift. DIY presents can be a great way to save during the holidays while still giving a gift that feels thoughtful and personal.
The holidays don’t have to be a budget buster. Follow these tips to help you cut back, kick back and have a happy and budget-friendly holiday season.
May 30, 2023
Managing Debt
September 7, 2021
Managing Debt
December 23, 2020
Managing Debt