6 tips to avoid holiday debt
This can be a pricey time of year but by planning ahead you can avoid a financial hangover come the new year. Author and financial expert Gail Vaz-Oxlade has come up with a few financial tips that will take the stress out of shopping and help you stay within your budget during the holiday season.
1. Make a plan. Don't leave shopping to the last minute and avoid using your credit card to purchase everything before actually starting your holiday shopping. Pay off any outstanding balances on your cards beforehand. Vaz-Oxlade suggests saving ahead of time by putting away a certain amount of money each month. Another way to really stay within your budget is to use an envelope for each category (food, gifts, wrapping paper) and write your list on the front and put the cash inside. In addition, she recommends making a list of people for whom you plan to shop and to consider setting a dollar limit on gifts.
2. Buy ahead of time. This tactic will help you avoid jam-packed malls and line-ups. Since we know that we have to buy presents anyways, Vaz-Oxlade recommends that if you see something on sale in August buy it and put it away. Sales happen all the time and if you wait long enough the perfect gift for that hard-to-buy for person will usually go on sale. If you have a hard time staying on budget, Vaz-Oxlade suggests shopping with cash.
3. Use coupons to shop around for the best deal. Check out sites like savingmadesimple.ca, RetailMeNot.ca, Shopbot.ca or Ebates.ca for deals. Try discount malls and liquidations centres for huge discounts on new items.
4. Don't buy presents for yourself. Avoid the temptation to shop for yourself while shopping for everyone else. This will help you save money, and when the bill comes in it won't be higher than it should have been.
5. Try regifting. Vaz-Oxlade condones regifting if it is something the person would really like. It can be something you received as a gift but can't really use. Canadian Living Magazine has some helpful tips on how to tactfully regift.
6. Give personalized gifts. If you know a new mother who could really use an evening out with her husband, offer to babysit or perhaps cook dinner for someone who works long hours. Vaz-Oxlade suggests clipping a picture of your "service" stating clearly how often you will perform this service or try making your own coupon book. These kinds of gifts only require your time and attention and are sometimes more special than a purchased gift.
Check out these books for more helpful hints on how to save money, avoid debt and stay on budget:
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