The holiday season is a time for family, friends and fun. Unfortunately, it’s also a time when many of us overspend. According to a recent report, the average American will spend $1,052 on Christmas gifts this year. If someone isn’t careful, all that holiday cheer can quickly turn into holiday debt that hurts financial well-being. Here are some tips to avoid overspending this Christmas.
Create a budget
- The first step in dealing with Christmas debt is to create a budget. Sit down and list all expected holiday-related expenses, such as gifts, travel, party supplies, etc. Then allocate a certain amount of money to each category. Once that’s done, make sure you stick to your budget! It can be tempting to overspend when you’re out gift shopping, but if you stick to the budget you set for yourself, you’ll thank yourself come January.
- Shop early. Give yourself enough time to find the perfect gifts without having to pay urgent shipping costs. Shopping early also helps you avoid the temptation to impulse buy last minute items that you may need to afford.
- Use cash or debit cards instead of credit cards. This helps you stay within your budget and avoid paying interest on purchases.
Use all Cash Back rewards
If you use credit cards wisely, you can actually earn some cash back on your vacation spending. Many credit cards offer cash back rewards on purchases made in specific categories, such as restaurants or gas stations.
Others provide general cashback rewards on all purchases. If you have a credit card that offers cash back rewards, be sure to use it when making your holiday purchases. That way, you’ll get some cash back to offset the cost of gifts and other holiday expenses.
There are other ways to keep financial well-being healthy and secure during the holiday season. Unfortunately, some of these suggestions are not widely known, and a professional can provide valuable guidance. Nationwide prepaid legal services provide a financial wellness benefit that all employees in an organization can use.
Adding structure to a budget
We have a nationwide network of certified advisors who assist people with everyday financial matters. These experts can go a step further to help an individual. Post-Christmas personal budgets are a critical part of financial well-being. A nationwide advisor will analyze a budget and examine a plan member’s cash flow. Then the counselor will give suggestions on where to reduce expenses and how to organize everyday finances better. This is the kind of help a person needs to get through the holiday season and the rest of the year as well.
We are looking for customer input
We offer help in other areas, including college debt and bankruptcy management. Countrywide wants to provide the services that exactly fit the needs of a client organization. We are asking the organization’s leadership to help create a financial wellness plan. A potential customer is asked to look at our benefit options and select the ones they feel their employees can use. The elections will be included in the final plan document and we will provide member services and administration. Customers can expect their employees to be treated with courtesy and individual concerns to be addressed promptly.
The holidays are a wonderful time of year, but they can also be a significant financial strain. By following an advisor’s tips for managing card debt during the holiday season, plan members can enjoy all the festivities without sinking into the red.
If you would like to know more about our financial wellness benefits, please contact us as soon as possible. What we provide can get employees through a big spending season and also have personal budgets that cover all types of expenses.