I know this should have been posted before this past Christmas, but this still would be useful to better prepare you for next Christmas and Holiday season. I know some of you have started writing New Year resolution that probably includes saving money and traveling, so hopefully this list would help you jump start your resolution..:)
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For those of you who are celebrating Christmas or even live in the country where Christmas is celebrated commercially, the end of the year season could mean damage to your wallet. But of course, there are ways to shop smart without doing too much damage to your bank account, here are the tips that you may use:
1. Budget your expenses.
Like anything with spending, always start with a budget. You must know how much and what are the price range of gifts you want to buy and how much reduction you can take on your bank account. Once you settle with the number, try to keep it and always keep track against your spending.
2. Write down all of the expenses.
Gift shopping can be a little crazy sometimes, especially with all the sale that’s going around. Sometimes you end up buying stuff that you don’t need just because it’s on a bargain. The most important thing is, to keep track your spending by writing down all of the expenses you have spent. This way, you know if you’re within the limit of your budget or over, if it’s time to stop or to buy more… 🙂
3. Cash vs. Credit card.
This is the conservative way of spending really. The only reason that it’s good during holiday shopping is that you can keep track your spending without being over budget. If you use your credit card, you end up charging more than you can pay, and if you can’t pay, you end up paying those high interest. You don’t want that, do you? Unless you really did #2, and you are fully aware that you’ll be able to pay all the charges next time the bill arrives, then go ahead with charging it in your credit card. The best way is to use one credit card with the amount of limit that matches your holiday spending budget. Therefore, once the card declines, you know that you’re already over budget. In a way, the strategy of paying things off with credit card is probably good once you know you can manage to keep it within budget. Look at it as a delayed payment because you spend them now, but pay them all off a month later.
