The holidays are the most awaited and fun time of the year, but they can give you a few reasons to worry as well. For one, there’s a lot of pressure to spend money. Sometimes we end up spending more than our budget.
In a recent Discover Survey, according to 36% of respondents, the most stressful aspect of the holidays is the potential of going into debt. If you want to keep yourself out of such a stressful situation, here are some steps you can take:
Make a budget for holiday expenses
You definitely don’t want to accumulate a huge number on your credit cards and carry it with you into the New Year. To avoid landing in debt, find out how much you can actually afford to spend and then stick to that amount.
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Take a look at your income sources and expenses for the coming months and figure how much they allow you to spend for the holidays. If you have any savings that are not reserved for emergencies, you can use those to cover some holiday expenses. The basic rule is to know your limits and set a budget to cover everything from gifts, travel, dinners, and the holiday cards you enjoy sending out.
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Boost your income
If you have some extra income in your hand it will be easier to cover your holiday purchases and avoid landing in debt. You can look for alternative sources of income and start a side hustle such as working weekend shifts at a restaurant or inputting data on your laptop for a company or teaching some students part-time. There are several other options to choose from if you are looking to boost your income over the next few weeks.
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Learn to say no
When it comes to celebrating the holidays and sending gifts, everyone is not on the same level. If you cannot afford an expensive vacation with your friend’s group then you may need to firmly but politely put your foot down. They may earn more than you or have different expenses and obligations.
If you want to avoid landing in debt you should speak up about your financial comfort zone and constraints. Avoid sending expensive gifts you cannot afford. Learning to say no to holiday expenses you’re uncomfortable with could be your key to avoiding debt.
Many people accumulate debt during the holiday season and regret it later when it takes months to pay it off. The above tips can help you avoid holiday debt and start off 2022 on a positive financial note.