January is typically one of the greatest months. It’s the start of a new year, we feel refreshed from the holiday season as we take on new resolutions, and football season gets more exciting with bowl games and championship games. But for some, January is also a time of despair, when their holiday credit card bills arrive in the mail. This article from U.S. News, written by Deacon Hayes, a financial expert and founder of financial education company Well Kept Wallet, offers tips to help you plan for expenditures and avoid racking up holiday credit card debt.
Set a holiday budget. It’s easy to get into the habit of spending mindlessly during the bustling holiday season, but your wallet will thank you if you make a detailed list of your gift-giving and holiday obligations, and set a budget for each expenditure. You can start by making a list of each gift recipient and setting a monetary limit on how much you can comfortably spend (in cash) on each person. From there, make a list of other holiday obligations that may cost you money such as social gatherings, family events, work parties and charitable donations. After you list your obligations, set a dollar limit for each one. By knowing exactly what expenditures are coming your way during the holiday season, and what each of those expenditures roughly cost, you can better prepare to have cash on hand to pay for those purchases.
Give gifts that don’t cost money. If your holiday budget is tight, consider giving gifts of time or service, both for your holiday gift recipients list and your charitable obligations list. For instance, gifts of time or service to family members or friends could consist of babysitting time for a sibling’s children, an offer to do the painting or landscaping for a housing project, or free skilled services you can offer such as cutting hair or organizing a room or closet. Gifts of valued time or service are a terrific way to bring a loved one joy during the gift-giving season and save your pocketbook some strain.
