The holidays are a time to spend with friends and family, but it can also be an expensive year if you do not plan. If you typically don’t save up for the holiday season or are looking to be more responsible with your spending this year, we have some tips that will help! First, we’ll go over what to do and what not to do when opening and using credit cards during this particular season.
Keep a holiday budget.
Consumers need to make a holiday shopping list, stick with it, and not go above the set number. Another tip is to do your best to get thoughtful but affordable gifts because you will be surprised how many people love thoughtful, inexpensive presents!
If there are multiple people in your league, consider splitting the holiday shopping so that you can split up your spending. This is not only cost-effective but time-efficient as well!
Consider the cost of your purchase.
This year, despite a slumping housing market, credit concerns, and the potential for a full-blown economic recession, consumers are still planning to increase their holiday spending. People spend money on holiday shopping, holiday gifts, holiday decorations this holiday season without thinking about their holiday budget at all.
If you are going to shop online, then make sure that the site is a trusted one. Please compare prices from different sites before making your purchase. You can also use coupons and deals for shopping online. The coupon code will give discounts on the total cost of items bought. So try to find out the best deals and offers.
Do not open a new credit card account for this holiday season unless you need to do that. Opening too many accounts simultaneously can lead to problems like getting rejected and damaging your credit score, which is terrible for future lending needs like car loans, home buying, etc.
Do not make impulse buys this holiday season.
Don’t be afraid to ask and negotiate for a better deal. Never pay the total price! Consider the cost of your purchase before making it, and don’t spend more than you can afford at any time during the year. If that means only buying gifts on sale or taking advantage of holiday deals, then do it.
Don’t be afraid to ask for discounts. Always negotiate prices with stores offering promotions and holiday sales, whether a new pair of shoes or the latest electronic gadget. Don’t let store personnel tell you that “it’s against the policy,” or they can’t do anything about it because their manager isn’t around. If something is on sale, for example, you should be able to get the sale price.
Make sure you can afford it now and in the future.
Don’t max out the credit cards. Make sure you can afford it now and in the future. Just because the holiday shopping season is here doesn’t mean that your wallet needs to take a hit every year, so be smart about how you shop this year. Use cash or debit cards whenever possible – they’ll help keep spending under control by giving you a visual cue of how much you are spending.
Don’t spend more than your budget allows! There is no shortage of holiday sales and special promotions to take advantage of this year, but that doesn’t mean that every item should be bought right now, if not within the budget. If something has caught your eye, then wait until it goes on sale or waits until you have saved up enough money to buy it.
Don’t let impulse shopping spoil your holidays! If possible, try not to shop more than once a month; doing so can help avoid unnecessary spending. Try sticking with cash or debit cards when holiday shopping this year because they will give you more of a feel for how much you are spending.
Do not use credit cards unless necessary. You should avoid using credit cards during holiday seasons because it can be harmful in many ways. If you want to take advantage of some offers, only purchase what is needed and pay off card balances immediately, so there will be no interest charges.
Don’t use excessive credits cards! If you want to purchase something, make sure it is within your budget limits rather than spending too much money on a single item or trying to fit in with others. You should avoid making impulse purchases when you are on a holiday shopping spree.
Don’t open new credit card accounts unless necessary! Just because the holidays are here doesn’t mean that your wallet needs to take a hit every year, so be smart about how much and what you buy this season.
Don’t buy for others to impress them; only buy what they need or want.
Do open new lines of credit when you need them, but don’t max out or spend more than you can afford to pay off at the end of the month. These are terrible habits that will lead to long-term financial problems if continued.
Don’t make a habit of spending more than you can afford at the holidays. If your friends or family members know that this is not in your budget, they should be understanding. This will ensure holiday happiness for all involved! In addition, when used responsibly, credit cards may improve relationships with loved ones during the holidays by allowing everyone to stay within their budget.
Do spend time deciding how much to charge on your credit card and what you will use the money for before charging anything so that you can avoid overspending or purchasing things that are not needed. The holidays should be a joyful time of year, but it is easy to get carried away with spending during this season, leading to financial problems.
Do not spend more than you earn, and do not charge anything that is unaffordable! If your friends or family members know that this isn’t in the budget, they should be understanding. This will ensure holiday happiness for all involved! When used responsibly, credit cards may improve relationships with loved ones during the holidays by allowing everyone to stay within their budget.
Get creative with gifts.
Try doing some personalized gifts rather than purchasing the same old thing everyone else is giving this year. Save money by creating homemade gifts for everyone on your list.
Consider using your credit card to purchase gifts for others if you have an outstanding balance that will take a few months or more to repay and would like to give back during the holidays while also improving your financial situation. In addition, if certain people are receiving presents from you, such as children or grandchildren, it can be a great idea to present them with their gifts early for you to pay on time and avoid incurring any late fees.
Spending can quickly get out of control with purchases such as presents, food, and drinks for different holiday gatherings and holiday clothing. Instead, consider giving fewer gifts overall by giving one gift per couple or one gift for a family. For example, a cookbook is an excellent present for a husband and wife who like to cook instead of giving a sweater to one and a gift card to another.
Only open credit cards when necessary, do not exceed your budget limits, or make impulse purchases. However, do spend time deciding how much to charge on your card and what you will use the money for before charging anything so that you avoid overspending or purchasing things that are not needed. EdFed has Banking programs that will help you save money and enjoy the holidays.