11 Ways to Avoid Holiday Debt During the Gift-Giving Season
It’s very easy to spend more than you should during the holiday season. From travel to gift-giving – after all, you only want to make the people in your life smile with a gift that they are going to love. But, come January, the Christmas cheer is all dried up and you might face the new year with a hefty credit card bill. Instead, with a little planning, you can avoid this wallet-emptying scenario. Here are 11 ways to avoid holiday debt.
1. Remember the True Meaning of the Holidays
The holiday season is really about family, friends, and making memories. When you think about it, it’s not about what gifts you give or receive or who spent the most money. So, forget all the decorating ideas you saw on Pinterest and keep in mind that money spent isn’t the true meaning of Christmas.
2. Save Up For the Holidays
It’s already a little late to follow this advice for the coming holidays, but the best way to help yourself next year is to save in advance. Starting in the new year, it’s a good idea to set aside $20 every month so that you’ll be prepared. This is a much easier solution than trying to find an extra few hundred dollars during December.
3. Set a Budget and Stick to It
Shopping without a budget is what will land you with a large credit card bill in January. Before you go shopping, set a firm budget and stick to it. Don’t forget to factor in food, decorations, travel, and items like wrapping paper into your Christmas budget as these expenses can quickly rack up.
4. Talk to Your Family and Friends
It’s likely that you aren’t the only person you know who is having second thoughts about spending big on gifts. Talk to your friends and family and agree on a spending limit and stick to it. Another solution is to do Secret Santa instead. Draw names from a hat and each person will buy and receive one gift each. This will cut costs dramatically, then decide on a spending cap.
5. Focus on the Kids
Christmas is the most magical time of year for all the children in our lives. So, why not focus on them, instead of the adults? Choose affordable gifts, or fill a stocking with small individually-wrapped gifts for maximum excitement.
Another great idea is to let your children make the centerpiece for the dinner table. This will save you money and occupy the kids with a fun task for a few hours.
6. Work an Extra Job During the Holidays
The best way to increase your cash flow is to create a new stream of income. Lots of retail stores will hire extra employees during the Christmas season to handle the demand. These jobs are usually part-time and temporary so they can fit around your existing schedule.
If you don’t have enough time to work a second job, there are plenty of side hustles that you can do from home. From freelancing to taking to surveys, use the internet to bring in some extra cash.
