Will holiday spending leave shoppers in the red this year? Not if they plan wisely and use some common sense tips.
Despite the COVID-19 pandemic, this is the most festive time of year, but consumers don’t have to end up with a holiday hangover when the bills arrive. Simple planning can make the season more care-free and enjoyable when you know you’re in control of your budget. To help consumers spend within their means and enjoy a financially happy New Year, Bath State Bank offers the following tips:
- Develop a budget. Before you start shopping, develop a realistic budget. Consider your income, subtract your normal monthly expenses and then add any savings to whatever cash is left over. If you need to use your credit card, think about what you can afford to pay back in January. Don’t forget costs beyond gifts such as postage, gift wrap, decorations, greeting cards, food, travel and charitable contributions.
- Spend carefully. Avoid shopping while rushed or under pressure, which can lead to overspending. Make sure to comparison-shop first.
- Avoid traps. Finding a spectacular sale on something you’ve been wanting can easily throw you off course. Stay strong and stick to your budget, and don’t apply for store credit cards you don’t need just to get a one-time discount.
- Save your receipts. Not only will you need them for possible returns, you’ll need them to keep track of what you’ve spent and to compare with your credit card statement. Knowing how much you spent will help you plan for next year, too.
- Be creative. Consider simple, hand-made gifts. Send greeting cards or handwritten notes of appreciation for those outside of your list. Home-baked goods or simple crafts are often less expensive and more appreciated.