The holiday season brings a lot of festivities and excitement. It’s also a time marked by lavish spending. Statistics show that US ecommerce spending hit $135.35 billion, and US retail sales reached $1 trillion in 2019.
Purchasing feels great, but this feeling fades away when you find yourself under a huge amount of credit. Debt can shake up your life and meddle with your plans — especially when it’s the start of a year. Here are 4 tips you can use to avoid a holiday spending hangover.
Tip # 1: Shop Within a Budget
Setting a budget for the month’s resources can help you refrain from impulse buying. Within your budget, you can make categories of your expenditure and allocate money for those categories. It can help you give a ballpark figure and tell you where you should spend more. However, it’s extremely important to stick to a budget; otherwise, your budgeting exercise will be worthless.
Tip # 2: Pay with Cash
Research shows that people who purchase things with a credit card tend to spend more money than people who pay in cash. There are various ways you can have cash at your disposal for the holiday season:
- Sell things that you don’t need in your house, like furniture, kitchen appliances, electronics, etc.
- Utilize your Christmas salary bonus to have more cash
- Cut costs on your regular spending to save cash
- Make a holiday account and save up.
Tip # 3: Save Money on Gifts
Purchasing gifts for your friends and family can be an expensive endeavor, especially when you don’t have enough money set aside for them. You don’t have to spend a fortune to make gifts special. Here are some low-cost ways you can make thoughtful and memorable gifts:
- If you work in a service industry, gift free or discounted services
- Get your creative juices flowing and make holiday cards
- When making gift lists, always include alternative options in case the first option is out of stock.
Tip # 4: Shop Early
Shopping early is great as you can spread out your purchases for a longer time and bag in items on discounts and sales whenever they come up. This way, you won’t face the financial burden of purchasing everything at once.
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