Skip the Holiday Debt

If we aren’t careful, we can end up using the rest of next year to pay off the debt we rack up this year.

The holidays don’t have to hurt your wallet and leave you in debt. Not if you start saving now.  There are many ways to accomplish this, but here are 5 to get you started:

1. Plan your holiday gifts in writing.

There are two steps to this. The first is to identify who you’re going to buy gifts for. Maybe your great-aunt Ruth gets a greeting card instead of a gift card, and maybe you bring in some homemade cookies for the office. You have to decide who’s on your gift list before anything else can happen.

The next step is to figure out what you’re going to spend on each person. Ideally, you could even pick out what the gifts are going to be, but that can be tough to stand by months in advance. By at least determining a dollar amount, you’re essentially establishing a budget and some financial boundaries.

2. Start buying presents now.

There’s no reason to wait until Black Friday. Online and brick-and-mortar stores have sales throughout the year. If you can pick up some gifts now, it will hit the pocketbook a lot less later. It’s easier, after all, to budget for $100 a month than it is for $1200 in November and December. If you strategically pay attention to sales, then you’ll be able to buy at rock-bottom prices.

3. Earn while you spend.

There are any number of shopping reward programs that will allow you to earn rewards while you shop. Rakuten is one example, but many stores have their own rewards programs as well. If you take advantage of them, you’ll be earning cash back or points for every purchase you make. If you consolidate your spending to a few stores or programs, this can really reap some hefty rewards.

4. Set a gift limit or gift exchange.

A gift limit or gift exchange can be a relief for everyone, especially if you have a big family. Instead of buying $150 gifts, maybe you set a $25 limit per person. Alternatively, you could each pick one person to buy for. But still set a dollar limit. Both methods can help you limit your spending in a significant way.

5. Bring in some extra cash.

There are oodles of ways to bring in extra cash, especially in today’s gig economy. You could go old school and have a garage sale. You could take the modern approach to a garage sale by individually listing items for sale on social media or Craigslist. Maybe you could be an Uber or DoorDash driver in the evenings for a few months to make some extra income. Depending on your employment situation, you could even ask for extra hours or short-term responsibilities to earn more from your primary employment.

The key is to remember that you’re in control of your spending and your planning. By taking the right approach, you can prevent holiday debt. It all starts now.

©2023 Amplified Life Network