The holidays have arrived. It’s time to spend time with family and friends, as well as getting everything ready for Christmas dinner. As part of these celebrations, you have likely entered into an exchange of gifts with the family, another with the office colleagues, and perhaps another with the friends. These types of commitments are sometimes unavoidable and have a significant impact on your income.
In December, many people lose control of their expenses using credit cards or lines of credit. This lack of control and overconfidence can make it very difficult to recover economic stability in January and possibly even during the first quarter of the year. Here are four tips to make saving money at Christmas possible.
Pay Yourself First
Many people designate a portion of their bonuses or bonds to pay debts, either from credit cards or lines of credit. However, it is recommended that you pay yourself first and reserve a portion of your bonuses to your savings. Keep in mind that setting a clear goal for the money you save will help you meet your overall financial goals, regardless of whether they are short, medium, or long-term.
Additionally, it is advisable to designate a part of your retirement savings, either as a voluntary contribution to your personal savings account or as an investment into a company retirement fund. The National Commission for the Protection and Defense of Users of Financial Services recommends allocating at least 10% of your income to savings.
Remember There is Life Beyond Christmas
Many people use credit cards and lines of credit to purchase presents at Christmas. Many reports take the entire first quarter of the year to recover from Christmas spending. Some go beyond due to unforeseen financial issues that prevent payments and expand the debt. If you plan on spending a lot at Christmas, you should plan to save with a Christmas savings account instead of using your credit card or obtaining a credit line with fees and interest.
You have to keep in mind that after Christmas, you will still have bills and responsibilities. If you can’t afford to purchase gifts without putting yourself in debt, you and your family may need to reassess how you do Christmas. You must think beyond the holiday and know the best gift you can give yourself and your family is financial stability and a look forward to financial independence. By staying within your means at Christmas, you will not only stay out of debt, but you will also be able to put money into your savings account.
Be a Thrifty Shopper
While it is understandable that many believe in and promote Santa Claus in their households, you can still control spending and get your kids what they want for Christmas. One thing is that if you want to provide the magic of Christmas but not over commit to what Santa brings, you can let your kids ask Santa for one gift and then ask them for a list of things they want that they may or may not get.
Once you have limited the Santa gift to one gift and receive the desires of your little one’s hearts, you need to shop intelligently. There are several ways you can do this while still giving your family a great Christmas. You can do comparison shopping, find coupons, or look for second-hand items on any of the many apps that both buyers and sellers use to share items for sale second hand. You can also hit up estate and yard sales. Shopping can be fun and rewarding if you look for the deals and ways to give without doing it until it hurts you financially.
You Can Buy on Credit
Almost everyone who has a credit card will use them for Christmas shopping. You should be encouraged to use them, but do so as sparingly as possible, and don’t max them out if you can’t pay them back within a billing cycle or two. Remember, you are making purchases on credit without knowing what the next few months hold for you financially. Purchasing anything on credit that expands your spending outside your means is a risk.
The bottom line is, you can buy on credit but keep it within reach even if you should hit financially difficult times. Understand that your credit card or line of credit may be needed for an emergency expense if you don’t have a savings account, so you should leave room on it for those unforeseen possibilities.
Conclusion
We all want to spoil our kids and loved ones at Christmas, but the most loving thing you can do for them is to provide a financially stable and debt-free future. If you are smart and use these tips to find money-saving ways to celebrate Christmas, you and your loved ones can relax and enjoy the season without unsurmountable debt hanging over your heads.
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