Avoid Overspending this Holiday Season

It’s easy to overspend during the holidays. There are gifts to shop for and lots of convenient seasonal sales — perfect for enticing consumers to spend money they might not have otherwise spent. When you want to stick to a budget and manage money wisely during the holidays, it’s smart to have a game plan in place. Here are some expert tips for avoiding overspending during the holidays.

Set Your Budget Now

The sooner you get your budget together, the better — especially if money is tight. When establishing your budget, make sure you write it down on paper or in a document on your computer, not just in your head. Once you've determined how much you can realistically afford to save each week, multiply that amount by the number of weeks you have left to shop, and that number is your holiday budget. Figuring it out isn’t enough, though. You have to make sure you stick to it!

Be Wary of "Sale" Items

This time of year, big sales are not in short supply. Sometimes you can find really good deals, but some sales are a trap for consumers. Know the market value of the items you want so that if they pop up on sale, you can be sure you’re actually getting it at a discount. Some shady retailers will markup the retail price, then slash that number down to the “sale” price — which tricks the consumers into thinking they’re getting a good deal.

Use Cash or Debit

Credit cards certainly have their advantages. Namely, buyer/fraud protections and earning rewards. Credit cards should only be used if you can afford to pay the balance in full before interest is tacked on. Otherwise, stick to cash or debit to avoid finding yourself in debt.

Don’t Forget the Non-Gift Items

Gifts probably aren't the only items you'll be purchasing this season. Chances are you might be springing for some holiday decor for your home, food for the family gatherings, and even gift wrapping supplies. It’s smartest to hit the seasonal clearance racks after Christmas is over to stock up on discounted holiday merchandise for next year. Do this each year to keep your holiday decor fresh without breaking the bank.

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