It’s not too late to control your holiday spending
DURING the Christmas holidays we tend to spend a lot more as we prepare for the festivities of the season. But the truth is, the holidays are a trap for unplanned expenses and impulsive buys, and if you lack self-control you may fall victim to holiday sales and deals that, chances are, you will come to regret. But racking up Christmas debt, according to banker Vaughn Levy, is avoidable if you make a plan to minimise debt even before you begin to spend.
How do you avoid going overboard? Levy shares tips that you can follow to make sure you do not get wrapped up in holiday expenses.
Create a budget
No, it’s not too late! You can still create a budget to manage your expenses over the next few days or so. Whether you are using a debit or credit card, you need to have a handle on all the proposed expenditures, as well as monies already spent.
Create a shopping list
Create a shopping list and stick to it. Check and double-check that you have everything that you need — from food and décor supplies to gift shopping and entertainment. You want to make sure that your budget includes all that you need.
Keep track of your spending
Keep track of money that you have spent as a way to ensure that you don’t go over budget. This may mean writing it down in a journal while you shop or using your banking app to monitor expenses.
Skip hosting holiday parties
Parties are expensive. Meeting up with friends and family is great, but what’s not so great is when all the expenses will have to be taken care of by you.
Challenge your family to make home-made gifts
Home-made gifts are always best because they are more meaningful. It’s a truer representation of the true meaning of Christmas; it also allows family members to share and build on their talents.
Compare prices
There is not much time left, but where possible, compare prices for items on your shopping list. To make things easier, choose the top two or three stores that you would usually get the supplies from and compare prices before making a final decision on where you will spend your money.
Pay in cash
When buying items you’ll appreciate the convenience of having your credit or debit cards as it’s much safer than walking around with a wad of cash. The downside though is that you may end up spending more than you had budgeted for. If you are in a secure shopping location then you can consider getting money from the ATM inside the mall to make purchases. This is a much safer option to consider if you decide to use cash.
Give fewer gifts
Parents tend to purchase every little toy their children show interest in. Try to figure out which gift would make your child happiest and buy that. Also, when family or friends ask what to get them, share items from that list of things your child likes.
Group gift
In a family, instead of buying single gifts, maybe you should combine money and buy one bigger or more expensive gift. For example, siblings can make up and buy one gift for each parent or you can combine funds with your kids to buy a gift for your spouse.
