Although holiday seasons are eagerly-awaited, sometimes, it can bring a certain degree of distress because of deficiency in financial planning.
It seems, “Americans with holiday debt added an average of $1,054, a 5% increase from 2016,” observed Magnify Money 2017.
However, a few tips could help you avoid major debt in the coming seasons.
- Outline a budget: Jotting down a simple holiday budget can help you derive a tentative figure that might enable you to understand how much is too much. A to do list that includes travel expense, shopping, gifting purchase and food could mean setting the limit.
- Find a part-time income: A job that can help you fulfill your holiday expense and at the same time be of your interest is a great way to start the season. In fact, it is more convenient to commit few hours a week during holidays to cover the seasonal expense.
- Switch card to cash: Purchasing items or gifts by swiping your card is an effortless task. However, the flip side is it will take you a few hours to notice your spend for the day. Using cash while shopping has an impact on the human psyche: as you watch the money change hands…you will become fully aware of how much to spend and where to draw the line.
- Stick to what you need: Holiday seasons can be overwhelming for the mind: there is a degree of excitement to shop what you like. In response, this leads to an unexpected overspend that toys with your actual budget planning. To avoid such instances from happening, make sure to follow your to do list that coincides with your budget for the month.