How To Avoid Going Broke This Christmas

Christmas is a wonderful time of the year. There are festivities and food everywhere. Plus, there are sales at countless stores! With all of this, it can be so easy to get caught up in the holiday shuffle that we don’t think about what we are spending on all of it. Even though this is a crazy time, there are things you can do to avoid over spending without thinking about it.

Don’t Carry Your Credit Cards

Yes, even though your credit cards can be used wisely, your mind can be so easily hijacked this time of year. You may see something that you really want and decide to make an impulse buy. If you limit yourself to your debit cards alone you will be less likely to spend it. Since it is cash, the emotional cost of spending is higher. When you have your credit card, there is less of an emotional connection as you may have a $5,000 limit which can be paid back at a later date.

Try To Get Your Christmas Shopping Done Earlier Than Later

The longer you wait to buy Christmas gifts the more you are likely to spend. The first reason is because you won’t be able to get one of the smaller gifts on someone’s list since they would be sold out. Secondly, the longer you wait you could have to pay more from someone else marking it up for being a hot item. Lastly, the longer you drag out buying gifts the more you will forget about what you bought and end up buying more (this has happened to us).

Set Dollar Limits

This one should be a no-brainer, but so many choose not to do this. Often we think of Christmas as how much we can spend on someone else. However, this should not be the case. Most people likely do not care about the gift itself, but rather the thought you put into it for the person. If money is tight or you have a big family, then set a limit. You can be open and honest with them too. Again, if you care about you, they are not going to care about the gift’s monetary value but rather the sentiment behind it.

Have fun this holiday season. Be smart about the money you are spending. Sure, we are just gearing up for yet another wonderful time of the year, but remember the reality will hit after it is over. If you spend way too much money on gifts and things, you will be feeling the hurt come December 26th.