Illinois Debt Consolidation Quote

See how much you can save with debt consolidation programs in Illinois IL

holiday spending

Simple Holiday Planning Tricks to Dodge Debt in the New Year

by

With a few holiday planning tricks to dodge debt you could be feeling holiday cheer even after you open your credit card bills. You don’t have to ring in the New Year with debt if you plan properly and here we want to help you to do just that. You should ring in your New Year with as much excitement as you did the holidays and when your credit card bills arrive you shouldn’t be afraid to open them up.

holiday planning tricks to dodge debt

[Read: Saving Money during the Holidays]

We all know how excited we tend to be when the holiday comes around but this excitement often doesn’t follow us into the New Year and towards the time of the month when we get our credit card bills. But with the holiday planning tricks to dodge debt you will find right here you will no need to want to avoid January come next year. Here we will help you to plan expenditure so you don’t rack up a lot of debt on your credit cards for the big holiday.

Forbes estimates that Americans spent over $630 billion for holiday shopping in 2015.

Set a Budget

Set a budget for your next holiday. First make a list of all who you will be giving to and then create a budget for each person. Totaling this up will allow you to see your budget for the entire gift giving season. When setting a budget for each person on your list, be realistic and only choose a price point you know you are comfortable with. Once you have come up with your gifting budget you now need to create a budget for other holiday expenses. These may include;

  • Parties in the workplace – you may be asked to contribute a menu item.
  • Donations to charity – if you are one of those persons who would like to give to the less fortunate in the holiday season.
  • Family gatherings – this could be something you may want to put on or are invited to and either way you should make a budget. If you are invited to family events you may need to travel and will need to include those costs in your budget as well.
  • Social gatherings – a night out with friends, to toast to the end of another year and the New Year ahead. You may need money for clothes etc.

Having this budget set ahead of time helps you to even have the ability to put small amounts of cash away so that when the holiday comes around everything doesn’t end up being charged to your credit card.

Money Free Gift Giving

A large chunk of the money spent over the holidays is spent on gifts. So one of the best holiday planning tricks to dodge debt is to give a gift that will not cost you any money. This can be a gift of service or a gift of your time. This is ideal for both friends and family as well as for charitable donations. Some ways you can gift your time or service include:

  • Babysitting for a family member
  • Inviting nieces or nephews for a movie night/sleepover
  • Offer your time and labor on a project around the house such as painting, a little landscaping etc.
  • Helping to organize a party
  • Helping to de-clutter
  • Volunteering at your local homeless shelter or community center

The possibilities are endless for giving without spending any money.

More Holiday Planning Tricks to Dodge Debt in the New Year

  • Use the budget you created for your holiday expenses you can now create a “countdown fund”. A count down fund is another of the holiday planning tricks to dodge debt that works well. Add up all your expected holiday expenses and divide that number by the amount of months or weeks left before the holiday. Each week or month, you will now going forward put that dollar amount into a savings account so that you will have money ready for the holidays so you won’t have to use your credit card.

A countdown fund is one of the best holiday planning tricks to dodge debt for use for other things as well such as for insurance premiums, annual bills and even for your vacations.

  • Search for tips to help you cut down the amount of money you spend during the holiday. Another part about holiday planning tricks to dodge debt is that there are so many people out there with tips and ideas that they use. Search the internet for ways you can get the most out of your money for everything from using old clothes to prepping for a party.
  • Lastly, don’t wait until right before the holiday to do your shopping. Always have an eye out for deals and specials at your local stores and also check consignment stores and clearance sections in regular stores and online as well. If you spot a coupon for something you know you would want to gift, get it with the coupon and then put the money you saved from the coupon into your countdown fund.

[Read: It’s Vacation Time: Vacation Saving Tips!]

Just thinking about what the holiday is going to cost you can be stressful but with these few holiday planning tricks to dodge debt in the New Year you can have a happy holiday and a happy New Year too.

Staying Away From Spending Temptations during the Holiday Season

by

Saving and spending money do not seem to be good bedmates; I love to do both. It’s just that during the last couple of years, my desire not to spend money has overcome my addiction to spending, and my savings have enjoyed the benefits.

Apart from that, some readers wanted a post on how to stay away from spending temptations during the holiday season especially. I’ve been brooding on this topic, so here you are.

Spending Temptations during the Holiday Season

Get To the Bottom of Your Spending

Let’s handle the weighty things now, because I consider that doing things this way will put the practical ideas into their place. Not long ago, I read the novel, Lost and Found, by Geenen Roth. Along with her husband, Roth lost their savings during the Bernie Madoff disgrace, but her novel is nearly all about her passionate relations with money.

Particularly in one place in the book, Roth shows her particular preoccupation about a pair of stylish but pricey eyeglasses she badly wanted to purchase. The preoccupation is similar to her rapport with use. Interviewed by Time she gives the reason: “In the same way that we use food for emotional reasons, we use buying things to fill something that we cannot quite name.”

To Roth, Things were equal to ‘love’. Where I was concerned, Things meant I was a part of it. I recall one out-of-control spree at University extremely well; I was being paid $10 per hour, and I missed classes to go shopping for many clothes. I recall the thought: This is so insensible making its presence felt in my head, and it was probably that time that I understood what shopping was to me. To me, gaining a new wardrobe equaled me being newer and improved. I would be more independent, less needy. (It wasn’t successful.)

Here are some suggestions to avoid spending during the holiday season:

Power shop

A reader, Erica, agrees. She commented: “ I find if I walk around with something in my hand in the store, after a while, I’m over it and I can put it back.”

I think that the fact of ‘owning it’ for a short time does not change your life in any way and you can live without it. This does involve a great amount of self-discipline and may not always work.

Focus on the big picture

This worked for Dad and me too. Don’t think about your lack. Replace this thought with what you want to achieve in financial goals. I kept watching my budget each day, perused personal finance and careful living blogs, kept my plans updated and watched my money grow. Okay, I still desire things but I don’t buy as much because quitting upsets my aims.

Wait

Binge-shopping is usually not thought-out. Therefore not embarking hastily on sprees helps you make up your mind whether you need an item, or whether it is just buying to spend money. “I’ve gotten to a point of waiting a week or a month or a year.” Dad explained. “And, if I still want or think I need it then so be it, I will get it. But, usually, it turns out the impulsive thought has passed.”

Don’t go shopping with spendthrift acquaintances

A friend of mine was great to go shopping with. He always purchased and that made me feel much better about my problem. If I’m unsure and I see him buying, then I am more likely to buy too.

Keep away from shops

Companies and firms work on emotional triggers. They put a lot of effort into trying to make us buy.

Go out without money

This may be opposite to the above, but I learned to enjoy things without owning them. Go visit shops without any money. This way, you cannot buy anything, so you just have to see things as just things.

You can also see the mechanisms that go into making you buy. All the subtle tricks, and displays. It may help you resist next time.

Write out a list of what you already have.

Keep this list where you can see it. However, keeping a list showed me where my money had gone. Besides, hearing a little voice in my head saying: Hey! You really don’t need this is easily ignored. A list is not, and besides, I can see what I already have that meets my needs.

Just quit

I have improved, but I still have setbacks. If I am having a bad day or work is piling on top of me, ‘retail therapy’ really calls to me. Again, it is not bad to want things, only when it gets in the way of your well-being or saving or life-goals, then it is a nasty problem.

Follow the above tips and you will hopefully be able to avoid spending temptations during the holiday season.