According to a recent survey, Americans took on $1325 in debt for holiday spending in 2019. The holidays are around the corner, and you are thinking about how to decorate your home, gifts to buy your loved ones and, traveling. All of these can be costly if not planned well. Today I want to discuss four ways to avoid debt during the holidays.
The holidays might mean different things to different people but, we can all agree that it’s a time to usually spend, and sometimes that spending is more than we can afford. It is easy to get caught up in holiday activities. People talk about budget and savings but rarely do they talk about creating a budget plan for holiday spending. According to the survey, towards the holidays, many Americans use their credit cards for almost all purchases. Here are four ways to avoid debt during the holidays
Try not to go into debt trying to show someone you care for them. It may take you months to pay it back and can hold you back from achieving future short and long term goals.
If you are like many people who spend so much on decorations (because it can add up), using the credit card with rewards can go a long way. I walked around my neighborhood and, I already see a few houses with beautiful outdoor decorations. However, I have to remind myself to avoid doing the same and stick to my family’s budget. Using the right credit cards can reduce some of your costs, assuming you pay your debt before interest accumulates.
I know we are in the middle of a pandemic, thus traveling may be restricted this year. However, if you are going to visit your family or friends during this holiday, try to use your vehicle instead of a rental, or using public transportation; assuming your destination isn’t too far. As a family of four, it will cost us approximately $300 to travel via train to visit our family on thanksgiving. If we have to do the same for Christmas, the total is $600. Driving will cost about $200 for both trips.
If you plan, you may find cheap tickets for public transportation, but it is usually costly the closer the dates. You can save money by finding other alternatives such as driving your car. Also, because of the pandemic, perhaps this is the time to do a “ZoomGiving” and “ZooMmas.” Doing so ensures all your family members and friends will be safe and healthy to avoid the risk of infection with COVID-19.
A few ways to save money on your travel plans during the holidays are traveling on a weekday, flying early morning, and purchasing your ticket early.
I know the holiday season can be tempting to spend. I walked into the store today, and everything looked so pretty. I wanted to pick everything but, I also remembered to stick to my budget and shop for the things on my list. The holidays are fun times. The above four ways to avoid debt during the holidays can assist you to be on track. Plan everything early, create and stick to a budget specifically for the holidays. You shouldn’t go into debt to show how much you love someone. Remember, giving doesn’t always mean monetary items; it can be kind words, warm hugs, or kind wishes.
Hammonds Life Budget Worksheet
SET EXPECTATION FOR YOUR LOVED ONES
Around the holidays, there is always the need to give. The act of giving is giving from the heart without expecting anything in return. Giving does not only have to happen during holidays and special occasions. So, during the season of giving, set the expectation with your loved ones. Let them know what the limit is, and make sure it fits within your budget. If the limit does not fit within your current budget plan, you can plan to gift later.
Try not to go into debt trying to show someone you care for them. It may take you months to pay it back and can hold you back from achieving future short and long term goals.
USE THE RIGHT CREDIT CARD FOR YOUR SPENDING
I have a credit card that has a price protection feature. The feature allows me to get a refund if there is a price reduction from the original price within a year of purchase. While it is an incredible feature, you have to keep track of your receipts and remember to check prices periodically. If you are going to be using your credit card during the holidays for big-ticket items, use one with a low-interest rate, one with rewards, and offers cash backs.
If you are like many people who spend so much on decorations (because it can add up), using the credit card with rewards can go a long way. I walked around my neighborhood and, I already see a few houses with beautiful outdoor decorations. However, I have to remind myself to avoid doing the same and stick to my family’s budget. Using the right credit cards can reduce some of your costs, assuming you pay your debt before interest accumulates.
USE ALTERNATIVES FOR HOLIDAY PHOTOS
As a family, we create a holiday card and send it to our loved ones for Christmas and New Years’. Over the years, we have received many cards from our friends and family. One thing I have noticed is the differences in the quality of the photos. One of my girlfriends told me they took their family photo with their iPhone on their way to church. It was unbelievable considering the quality of their holiday card. One thing my family does is get a coupon through Groupon to use at JC penny. Last year we spent $25 on our holiday photos by using a coupon from Groupon. I know friends who spend upwards of $400 on holiday photos. Our phones these days can take amazing photos. You can save a lot of money by using coupons or using your smartphones to take holiday photos instead of hiring a professional.OTHER TRAVELING ALTERNATIVES
I know we are in the middle of a pandemic, thus traveling may be restricted this year. However, if you are going to visit your family or friends during this holiday, try to use your vehicle instead of a rental, or using public transportation; assuming your destination isn’t too far. As a family of four, it will cost us approximately $300 to travel via train to visit our family on thanksgiving. If we have to do the same for Christmas, the total is $600. Driving will cost about $200 for both trips.
If you plan, you may find cheap tickets for public transportation, but it is usually costly the closer the dates. You can save money by finding other alternatives such as driving your car. Also, because of the pandemic, perhaps this is the time to do a “ZoomGiving” and “ZooMmas.” Doing so ensures all your family members and friends will be safe and healthy to avoid the risk of infection with COVID-19.
A few ways to save money on your travel plans during the holidays are traveling on a weekday, flying early morning, and purchasing your ticket early.
I know the holiday season can be tempting to spend. I walked into the store today, and everything looked so pretty. I wanted to pick everything but, I also remembered to stick to my budget and shop for the things on my list. The holidays are fun times. The above four ways to avoid debt during the holidays can assist you to be on track. Plan everything early, create and stick to a budget specifically for the holidays. You shouldn’t go into debt to show how much you love someone. Remember, giving doesn’t always mean monetary items; it can be kind words, warm hugs, or kind wishes.
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