Holiday Hell – 5 Financial Mistakes to Avoid This Holiday Season (And What to Do Instead)

While children look forward to Christmas from January onward, it can be a terrible time for adults dealing with holiday season financial dramas. How are you supposed to give your family everything they want or enjoy a holiday away if you’re already strapped for cash? There are so many more financial mistakes lurking in the holiday season. Save yourself a lot of grief by not doing any of the following. 

Holiday Season Financial : Relying on Credit Cards and Payday Loans

It’s tempting to view payday loans and credit cards as viable solutions because they solve your immediate problem. However, all you’re doing is delaying and compounding the problem. Instead of payday getting stuck in a savage debt cycle, why not look into alternatives to payday loans? 

For all those essential items, such as whiteware and even the kids’ upcoming school fees, you can take advantage of low or no-interest loans from non-profit lenders that won’t throw you into a world of debt. 

Not Saving Year-Round

Christmas is not an unexpected event. It’s on the same day of the same month every year, and it never pops up out of nowhere. Still, one of the most significant mistakes people make is waiting until the last minute to purchase gifts and make arrangements. Instead of making this costly blunder, start saving immediately after the previous holiday season ends. 

If possible, set up an automatic payment that will ensure you can manage the basics and a few treats. Most households will spend around $1,500 over Christmas, and that can be a lot to come up with if you haven’t spread it out over 12 months. 

Having No Budget : Holiday Season Financial Trouble

You would be surprised at how easy it is to let your spending get out of control over Christmas. You might think a few small ticket items won’t break the bank, but they all add up. Around 33% of Americans will spend at least $1,000 on gifts, while many people spent about $885 per person. 

Think about what you can afford to spend, not just on gifts, but on things like food, utilities, extra guests, accommodation, and vacations. More importantly, stick to your budget. More people go into debt at Christmas than any other time of year, so don’t let that be you. 

Not Making a List

Making a list doesn’t just save your Christmas planning sanity; it also helps you avoid overspending. Note down everyone you need to buy presents for this year. When you purchase something for that person, cross them off the list. Otherwise, you can find yourself browsing store shelves and getting items for people who already have enough from you. Within a matter of moments, you can blow your whole budget without realizing it. 

Starting in December

In 2018, around 56% of shoppers surveyed said they planned to complete their Christmas shopping the Saturday before Christmas. Not only does that mean you’re fighting the masses to get your hands on those must-have Christmas goodies, but you have to spend a considerable amount of time and money on the endeavor too. A better idea for your budget (and sanity) is to shop for gifts throughout the year. This allows you to take advantage of good deals while avoiding the Christmas crowds and marked up prices. 

Christmas is always going to be a hectic time of year, no matter how you plan it. However, that doesn’t mean you can’t prepare yourself financially. Start saving money at the beginning of the year, set a budget, make a list (and check it twice). You can then be as prepared as humanly possible for the crazy season.