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‘Tis the season of giving.

With Black Friday now behind us and gift lists before us, it is very easy to overspend during this time of the year. It doesn’t matter if you have a small family or a large family, or if you have a substantial income or a modest one – avoiding holiday debt is a challenge worth overcoming this year. The majority of people you know will probably wince when they get their credit card bill in January. There in black and white will be all the money they spent on those “can’t miss out on deals.” Looking at that balance due often makes people wonder where those deals were.

There are many ways to avoid debt during the holiday season:

Create a budget and stick to it. The most important thing for you to do is to assess your finances and determine how much you can afford to spend. It is financially healthy to set limits on your spending to stay out of debt. Once you create a budget, it will be your responsibility to stick to it!

Limit who you spend money on. This does not mean that you are a Scrooge, this means that you are smart. It is essential to make a list of those for whom you need and want to spend money on. Excluding your neighbor down the street or your co-workers does not make you a bad person. If you are wanting to avoid debt and get your finances on track, spend your money wisely.

Save money throughout the year. A budget is simply a plan for your money. It is much easier to set aside a little bit of money each month throughout the year than it is to come up with it all at once in December. Many banks offer a specific account into which you can automatically transfer a certain amount from your paycheck each month. This is an easy way to budget!

Pay with cash. If you have saved money throughout the year in your “holiday account,” cash it out to go shopping for the holidays. Cash is harder to give up than swiping a credit card. With a budget and a list of who you are shopping for, it is easy to see where your money is going as you spend it. You won’t be left wondering where it went. Having cash makes you aware of your spending and helps you not overspend because you can literally see it dwindling down.

At the practice of George R. Belche, Attorney at Law, we want to help you make wise decisions with your money. By avoiding debt this holiday season, you can ring in 2020 on a solid financial footing.

George R. Belche, Attorney at Law