December is the month to splash, splurge, enjoy and forget all the worries in life. It is the time to shop till the bags drop from your hand.
Although it is quite tempting to spend all your money on your loved ones, yet if you're not little bit careful, then you may have to face serious consequences in the next year.
The actual cost of the Christmas celebrations will become clear in the very first month of the coming year, when you've to pay a huge amount of credit card debt.
It'll take a few months or more to get over the after-effects of the Christmas celebrations.
Have a look at your wallet and pocketbook before shopping for the Christmas.
Your family and friends may have unrealistic expectations regarding presents and gifts, but this doesn't mean that you've to overlook your budget.
Be practical and buy gifts as per your affordability. One good tip is to involve your family in the decision.
This may help your family members to stop making unrealistic expectations from you.
Read along to know about some other tips that can help you enjoy the festive season without getting into unnecessary debt problems.
How can you have fun in Christmas without getting into debt?
Check out the 7 tips that can help you get into the festive fervor without receiving a huge number of credit card bills.
1. Discuss and get creative ideas:
You don't have to spend a huge amount of money and buy expensive presents for your friends. Discuss with your family and get some creative ideas to please your friends. For instance, your best friend may not have any time to take his dog for a walk. You can do that for him without spending a dime.
2. Skip formal invitations:
If you're throwing a Christmas bash, then skip sending formal invitation letters to your friends. Send emails to your friends. The best part of sending emails is that you can invite hundreds of friends at the same time. If you do need to change the date and time of the party, you can easily do so within a few clicks as well.
3. Buy presents as per your affordability:
Make a list of the presents that you want to buy for your friends. Determine how much you want to spend for your friends. Once you've clear idea about your budget and the presents, rush to the shop as soon as possible. Watch out for the cheapest price for the item that you want to buy. Don't stick to the traditional retail outlets only. If you're not getting good offers, then try shopping online.
4. Don't skip your bills:
Don't forget your present bills while you're busy in purchasing gifts for your friends. Remember, if you don't pay your present bills, then you'll accumulate debts soon. Pay your rents, insurance premiums, tax, utility bills and other debts on time.
5. Try to reduce banking costs:
Cash can help you shop within your budget. However, like everything, it has some disadvantages too. For instance, if you decide to use an ATM that is not within your bank's network, then you may have to pay some additional fees.
You may have to spend around $3 for each transaction. Moreover, the ATM will charge you a fee as well.
If you're really want to use less credit cards and shop with cash, then make sure you withdraw a huge amount of money in bulk from the ATM before rushing to the departmental store.
6. Borrow only if there is no other option:
If you really need to borrow money to have a good time in this festive season, then make sure you take out a small loan. Make at least the minimum payment to avoid additional charges.
Avoid payday loans by all means as these loans will jeopardize your financial life in the future days.
7. Plan a party wisely:
You'd have a to spend a certain amount for organizing the Christmas party. Try to look out for the areas wherein you can save money. For instance, food and wine. If your guests want to bring something, encourage them to do so. Someone can bring a bottle of wine whereas others can cook a specific dish and bring it to the party. This will help you reduce your budget on food.
There are thousands of ways to celebrate Christmas, but having a zero balance in your savings account is not the ideal way to step into the new year. You'd obviously don't want to become a broke at the end of this year. Formulate a plan and make sure you stick to it by all means. Don't overspend or go beyond your means to please everybody. Rather save some money to welcome the New Year cheerfully.