Holidays are fast approaching. The glitter of shops, the lure of a cozy mountain ski resort, as well as the call of the grandpas and grandmas to come over for the holidays are all quite tempting. The question is, can you afford it?
According to a poll made by Morning Consult this 2024, approximately 20% of adults in the U.S. said that they would have to take a loan in order to pay for holiday expenses, which includes celebrations that they need to attend to.
Obviously, getting to spend the holidays with a wad of cash or a 5-digit balance in the bank will make you enjoy, but such state is only temporary. Count weeks and that's it. After which, it will be a year-long (good if it would only take year) debt payment scheme that you would be worrying about.
So here are some practical ways that you can enjoy the holidays without getting into a debt pitfall.
1. Calculate actual comprehensive cost of the holidays
Courtney Burrell, a senior financial professional, told U.S. News that the best approach is to initially create a list of holiday expenses because it is a bit hard to make last-minute purchases.
2. Pay charges in real time
What you can do is to update your credit card account with the amount that you spend after every purchase. This means that you have to have your banking app on your phone, then transfer the money to your credit card account after every swipe.
3. Set a limit on personal expenses
While it may be tempting to do everything at once over the holidays, the most prudent thing to do is to prioritize. Spend on what matters to you most, then you can put off the next on the list for next year. If you have been planning to visit your family over the holidays, then do it for this year, and have that winter resort vacay next year.
4. Use an app to track your holiday expenses
When shopping is done during a holiday rush, spending can get out of control. One way to discipline yourself is to use apps like spreadsheets. This helps keep you in track and avoid spending on unnecessary expenses.
5. Use the amount in your wallet
This may be an effective that you can use. According to Jeff Rose of GoodFinancialCents, what you can do is to put a certain amount of money in your wallet based on your budget and derive all your spending from it. This will reduce card swiping. Also, ensure that you keep receipts on all expenses for any exchange or returns.
These five simple ways are practical and straightforward. Once you apply them, you may find yourself breezing through the holidays without an additional debt.
