Everybody waits for the start of the holiday season with impatience. It’s wonderful when people can get together and enjoy the cozy holiday atmosphere in a family circle. But many people also find this time full of problems because they need to spend a lot of money to buy gifts and to cover holiday expenses.
For students, this time can be especially difficult because most of them have limited income and but they also have many expenses. This way, graduates of one of the American universities have found out a club which helps students to deal with their personal finances and learn financial literacy. Their tips can be helpful not only for students but also for those who have graduated many years ago.
Plan Spending and Save up Ahead
To understand how to fix the problem it’s necessary to find out the reason why this problem arises. Many consumers overspend because they meet the holiday season with no personal savings and without any ideas of gifts they want to make. That makes them rely on short-term loans online and credit cards and when holiday time is over they find themselves in debt.
To avoid it, it’s necessary to start holiday planning somewhere in October or November. Understand that the earlier you will start building savings the more funds you will save eventually. Another important point is to know how you will spend this money. Make a list to see what you need to buy and start searching for stores for the best deals. There are online resources offering a variety of goods on sale. Also, take advantage of coupons to buy your favorite items with impressive discounts.
Don’t Buy on Impulse
The impulse buy is an enemy of frugal shopping. Of course, on most occasions, you can get a thing you’ve bought back to the store but learn to appreciate your time. Financial planning will help to avoid wrong purchases and you will get exactly what you want.
Fortunately, retailers understand consumers’ need for saving money and provide many attractive offers. But don’t buy something just because it’s cheap or on sale. This trick can make you pay twice. Also, it’s not worth underestimating things you can do on your own. Use your talents to surprise your relatives and beloved and remember that the best gifts are not the most expensive ones but those touching your heart.
Limit Credit Card Usage
If you failed on saving up the money for buying gifts still it’s not the reason for getting in debt. Credit cards can help you out but don’t rely on them completely. Think about how you can make some money quickly, for example, do some job or sell some stuff you don’t use.
Just define the amount of money you can spend with your credit cards and don’t exceed the budget. The New Year is a beginning of better life so get ready for good changes. Limit your spending and follow simple tips to avoid financial problems. If you’ll stay frugal then you’ll not have to deal with the debt and will be able to spend your time on more important things.