Holiday debt is sneaky. It has a tendency to add up quickly without you even realizing it. There is good news, however. Keep reading, to learn more about how to avoid overspending during the holiday season. It’s probably easier than you think!
Set a Budget
Setting a budget is honestly the number one way to help you avoid holiday debt. Come up with a figure based on factors such as your savings, income and financial obligations.
Once you determine what your budget is going to be, stick with it! Don’t be tempted to spend more, just because you’re getting a great deal.
Plan a Gift Exchange
A gift exchange is the perfect solution for larger families who really can’t afford to buy gifts for every family member. It allows you to splurge on the person you’re assigned to. The best way to figure out who “gifts” who is to draw names. If your family celebrates Thanksgiving together, consider drawing names then.
Buy Throughout the Year
Purchasing holiday gifts throughout the year is a great way to spread out your spending and to take advantage of seasonal sales at the same time. Setting a monthly budget is just a simple as setting a total budget. It may be a little late in November to buy throughout the year, but you can start getting in on the sales now versus mid-December.
If you choose to take advantage of this tip, take caution when purchasing items such as clothing or current fads. Clothing may not fit or fads might be outdated, by the time the holiday rolls around.
Make Gifts Yourself
If you’re crafty or have a certain talent, why not give gifts you make yourself? Many people prefer receiving something homemade, as opposed to a store-bought item. Taking the time to make gifts shows the recipients how much you care. Not sure what to make? Spending time on Pinterest will probably give you all the inspiration you need!
Side Hustle & Save
Do you have a side job you can use to help fund your holiday spending? Or ways to earn gift cards in exchange for a little work? Use some of those gift cards or extra money on gifts. And watch the sales. I’ve purchased a few gifts for my kids because I watched the prices for a few months, and I didn’t think they’d go any lower (so far, they have not gotten any lower than what I purchased them for.) My daughter’s “big” gift this Christmas is actually double the price compared to what I purchased it for a month ago.
These are just a few simple ways to help you to avoid debt during the holiday season. There’s absolutely no reason to get stressed out because you spent too much. Remember, when you take the time to plan, overspending is totally avoidable.