10 Holiday Money Mistakes to Avoid
6. Using your credit card to buy gifts
During the holidays, you’d probably be looking forward to receiving as well as giving gifts to be happy and make other people happy, respectively. However, swiping your credit card to buy holiday gifts without the assurance of how you’ll be able to pay for it would create a lot of problems for you in January the following year. You might be able to monitor your holiday spending better if you use cash and as mentioned earlier, if you plan your holiday gifts list first.
7. Keeping up with the Joneses
Hosting holiday parties can be a good time to show off to others just how financially capable you are. However, this might also cause you to overspend on catering or home decorations, whatever you might need to impress others. It is important, though, to be honest with yourself on what you can afford to spend and who you would like to invite to your parties for a holiday meal. You don’t need to impress anybody and end up racking up more debt over a gathering. Some people even ask guests to bring a dish they’d like to contribute to the party to avoid over-the-top holiday spending.
8. Not being able to control impulse buying
When you have been holding back months before you started holiday shopping, you might have trouble dealing with your tendency to buy something for yourself impulsively. It can be quite tempting if you already have cash in hand waiting to be spent on your intended holiday gifts for the people you love. To avoid this, you can indulge in yourself in small purchases as a reward for yourself during the holidays.
9. Not budgeting for extra expenses
When budgeting for the holidays, you might make the common mistake of focusing only on how much it would cost you to buy the gifts, forgetting that you also need to spend on holiday cards, tips, postage, and holiday parties. If you prepare something for these often forgotten expenses, you might be able to avoid ruining your holiday budget.
10. Forgetting what the holidays are all about
This is the time when you show your loved ones how much you appreciate them through gifts. You can do it without stretching your wallet too much and accumulating more debts for you to deal with the following year.