Posted on Tuesday, December 18th, 2018 at 7:00 am
Are you struggling to stay within your holiday budget this year? That’s understandable. Many people end up spending more money during the holidays than they planned to. This problem can be prevented if you plan ahead for next year’s holiday budget.
According to State Farm, consumers spend $1,2226 on their end-of-the-year shopping. In addition, American consumers spend about $289 over the Thanksgiving weekend (which includes Thanksgiving Day, Black Friday, and Cyber Monday).
Begin planning out your holiday budget for next year right now. Figure out how much you spent on gifts, food, and travel. Start putting away money now so you won’t have to go into debt next holiday season. Don’t forget to save a little extra for things like cards and wrapping paper.
Another strategy that can help cut costs next year is to use a prepaid debit card instead of credit cards. State Farm says that 23% of consumers take four to six months to pay of their credit cards after holiday spending.
You can control your spending by limiting yourself to the amount that you put on a prepaid debit card. Doing so forces you to make conscious choices about not only what you buy but also how much you are willing to spend on each item. You are going to have to comparison shop to see who has the best price.
That may sound frustrating, but it is worth it. Plan ahead, and you may be able to avoid using your credit cards. Your new year doesn’t have to start with a massive amount of credit card debt!
State Farm says you should wait 2 days between when you see something online that you want to buy and when you actually buy it. Doing so prevents impulse shopping – which can really get expensive over time. It also gives you time to see if the item is selling for less somewhere else and to really think about the potential purchase.