With winter just around the corner, now is the time to make decisions that will help keep this holiday season as debt-free as possible. It's important to take steps now to get your finances under control. This year you would be wise to think differently about your spending for the holidays, in order to be able to go to 2021 in a reasonable financial situation.
1. Make a plan
Budget' is actually synonymous with 'a plan. Check your household budget to make sure it's up to date. Then you can develop a specific budget for the holidays. This should include all gift recipients, along with gift ideas and estimated costs. Including cards and shipping costs; decorations; tips for babysitters, cleaning lady and other service providers; and gifts for teachers, neighbors or others. Due to the pandemic, many people will not incur travel and entertainment expenses, but if you do, it's important to include them.
2. Compare the budget with reality
Take an honest look at your budget. Can you afford everything on your list? If not, scale back. It's much easier now than later, and much better than spending money you don't have.
3. Look for savings
From now on, check your email, online classifieds and catalogs for discount codes or offers. Check out an app that lets you compare prices. Track deals to find maximum savings and note expiration dates.
4. Be smart when buying online
Debit cards can help shoppers stay within budget, as it is not possible to spend more than what is in the bank account. Or use PayPal, which allows you to transfer money directly and securely from a checking or savings account.
5. Don't wait until the last minute
Starting shopping early can give people more time to find bargains. Savvy shoppers can look forward to the perfect items. Those who plan to make gifts will find it helpful to start their projects now. If you bought a gift for someone, check it off your list. Then move on to the next person.
6. Use the debit card wisely
In light of the security practices exposed by the pandemic, many retailers prefer, or even accept, contactless payment. Whether you use a credit and/or debit card, be aware of what you put on each card and make sure you have a plan for how you will pay any credit card charges.
7. Spend Rewards
You may have a stash of accumulated rewards on your credit card. If you visit certain shops or restaurants, you may have accumulated points. Or maybe you have a jar of coins at home to hand in for gift cards. Make a plan to invest these rewards in Christmas gifts.
