It’s hard to believe we are into November, with the holiday season fast approaching. Too often, holiday spending creates debt for us, as we spend beyond our means and pay for it in the following year.
Today, Paula explains how to avoid these pitfalls. The first strategy of course, is to budget for the year ahead of time. This means having a set budget for the holidays, dividing that number by 12, and setting aside money every month to prepare.
Producer Jon says that he likes to spoil his nieces and nephews every holiday. But when you were a kid, which do you remember more? The cash in a Christmas card from Grandma and Grandpa, or the time you spent with them? Was it a play, a baseball game, or even just a fun sleepover at their house? Not every gift needs to be monetary.
If, however, you find yourself in debt after the holidays, it’s important to pay it down aggressively. This is especially true if it’s credit card debt that carries interest. We’ve talked in previous episodes about the power of compound interest, and how it can really add value to your investments. But it can also work the other way. If there’s interest on debt you owe, that can also compound, costing you much more than the price of the gifts you purchased.
With inflation rising throughout 2022, the holidays are going to cost more this year. That includes gifts and travel. Where can you save on that? Can you travel at off-peak times, like flying on Tuesdays? Some folks are even skipping holiday travel and flying or driving at more convenient times to see family.
Really, the key to holiday spending is planning. If you haven’t planned for 2022, take note of what you spend so you can plan for 2023 throughout the year.
And if you need help with this, or any other topic related to managing your money, reach out to Paula Christine at https://paulachristine.com/
Check out her Making Money Matter Course, or send her an email at Paula@PaulaChristine.com