With Thanksgiving and Black Friday right around the corner, many people begin their holiday budgeting early to ensure they have the best gifts at the best prices. Unfortunately, the holiday season is typically a stressor in terms of people’s finances.
Many Americans end up overspending over the holidays and driving themselves further into debt. According to a poll from creditcards.com, 61% of credit cards holders will rack up more debt during the holiday season.
What can I do this year to avoid overspending?
While it’s totally fine to enjoy the holidays with your families, there are ways to celebrate them without digger a deeper hole for your finances:
- Budget early – Before Thanksgiving and Black Friday sneak up on you, try to establish an overall budget for your gifts. You may even designate a specific budget for each person if that helps you manage the financial load.
- Spread out the spending – Some folks try to buy all their gifts at a single time. Instead, consider buying Christmas or other gifts throughout the last few months of the year. No one says you have to wait until Black Friday to begin.
- Buy things on sale (but only what you need) – The beauty of the holiday season is the numerous sales across all retailers. It could save you a significant amount of money if you focus on buying gifts while they are on sale. But beware buying products because they are on sale. It could lead to major overspending in the long term.
Implementing one or more of these tips could protect your wallet during the happiest time of the year. But these strategies won’t help you address any current debt. If you are overwhelmed by your current finances, there are options to restructure and repay your debts or loans.
