While impressing your in-laws may not be cheap, holiday gift giving can put too many Americans in deep debt. In January, financial troubles can be caused by gift-buying and high heating and energy bills.
What is the key to getting rid of holiday debt? Avoiding it. Americans should begin saving money for their holiday funds before they even start to wear winter clothes. Even families that fail to plan in advance can still create holiday budgets.
Holiday shoppers need to make a list. This could include obvious expenses such as a digital camera for a brother or wrapping paper for holiday cocktails after work. Family members should cut down on unnecessary spending. A $3 latte per day can add up over $90 per month, which could be enough to cover holiday expenses.
Although store credit cards may seem like great deals, they often have high interest rates. This means that people who are late on their payments could see their debt grow quickly. Credit cards should be treated as cash and not as a way for shoppers to purchase things they can’t afford. They shouldn’t spend credit cards if they are unable to pay the money back within 30 days.
Online shopping and shopping early can help families save. Last-minute shopping leaves Americans with less time to compare prices, find coupons, and shop for sales. Online shopping can be a great way for families to save money. Freebies such as gift wrapping and shipping are a great way to cut costs.
Family members should not stop saving money if they are able to survive the holidays. Instead, Americans should make saving money for retirement one of the New Year’s resolutions.
Some financial services let users save small amounts of money at one time. Small savings can grow into healthy nest eggs over time. Only 252www.save252.comThe service allows users to save as little as one dollar per day towards retirement. The service automatically transfers a certain amount of money to an IRA or savings account from a regular check account.
