Holiday Tips – How to Avoid Debt During the Holiday Season by Lakeisha Rolle
The holiday season is normally that time of the year where individuals emphasize on gift-giving, spending quality time with family and friends, and donating to those that are less fortunate. At times, it can be so easy to get caught up with the gift giving and decorating aspects of the holidays that we quickly forget that it only lasts for a few days, while the regret of overspending lasts for so much longer. Many people find themselves going into debt or increasing their existing debt during this time of the year because they either lack a spending plan or don’t stick to the plan they’ve created.
1. Create a holiday budget including the “extras” that aren’t normally included in your monthly budget.
Let’s be honest here. During the holidays, we tend to take it up several notches and that’s absolutely fine. If you are going to take it up a few notches, it is important to ensure that your budget reflects the additional categories where you’ll be spending to help you remain on track. Here are just a few examples of categories to include in your holiday budget – and no, it’s not only about the gifts! Allocate for higher grocery costs, dining and entertainment, home and office décor, a new outfit for the Christmas party or the night out with friends, charitable giving and finally, all those Secret Santas you picked up at work, church, extracurricular activities, or with friends.
2. Set a spending limit for gifts.
Ask yourself how much you can afford to spend this year on gifts. If you are still recovering financially from the pandemic, then it would not be wise to spend a large portion of your income on gifts just because it’s the holiday season. Carefully allocate a specific amount of money that you will spend on each person you would like to purchase a gift for. Also, you may not be able to purchase a gift for everyone this year, so in some cases, you will have to be very selective about who gets gifts this year and hopefully they will understand your situation.
3. Scale back on gift-giving by using the “4 Gift Rule”.
If you are working with a tight budget but you insist on getting at least one gift for everyone on your list, use the “4 Gift Rule” to help you decide which type of gift or gifts to purchase. By using this Rule, you have the option of choosing from the categories below. This will definitely help you to stick to your spending limit and save lots of money. Instead of running around trying to figure out what to purchase, consider purchasing:
· Something they want.
· Something they need.
· Something to wear.
· Something to read.
4. Take advantage of Black Friday and Cyber Monday deals. Also, use social media to purchase gently used items at great prices.
Here’s a tip. Throughout the year, drop items in your online cart or jot them down on a piece of paper. Once you come across the item or something similar at a great price, go ahead and consider purchasing it at little to nothing. If items require a bit of “TLC”, this will give you a few months to touch it up and turn it into the perfect gift for the holidays. The best part about it is nobody will ever know…well, unless you tell them!
To learn more about how you can save big and avoid debt while still being able to give good gifts, check out my 2-in-1 Holiday Spending Guide and Reusable Budget Planner. If you follow the tips outlined and stick to the Budget using the Budgeting Tool included in the Guide, you will never overspend again - I promise! While reading through, I'd like to encourage you to circle the top 3 tips that stick out to you and use them to guide your spending patterns this holiday season.
Get a 2-in-1 Holiday Spending Guide & Budget Planner: https://lakeisharolle.gumroad.com/l/holidayspending