The holiday season is a time for family, friends, and fun. Unfortunately, it is 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 is not careful, all that holiday cheer can quickly turn into holiday debt that harms financial wellness. Here are a few tips to help avoid overspending this Christmas.
Create a Budget
- The first step in managing Christmas debt is to create a budget. Sit down and lists all the anticipated holiday-related expenses, such as gifts, travel, party supplies, etc. Then, allocate a certain amount of money to each category. Once that is done, make sure you stick to your budget! It can be tempting to overspend when you are out shopping for presents, but if you stick to the budget you set for yourself, you will thank yourself come January.
- Shop early. Give yourself enough time to find the perfect gifts without having to pay rush shipping charges. Shopping early will also help you avoid the temptation to impulse buy last-minute items that you may need help to afford.
- Use cash or a debit card instead of a credit card. This will help you stay within your budget and avoid paying interest on purchases.
Use Any Cash Back Rewards
If you use credit cards wisely, you can actually earn some money back on your holiday spending. Many credit cards offer cash-back rewards on purchases made in specific categories, such as restaurants or gas stations.
Others provide general cash-back 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 will get a little bit of money back to offset the cost of gifts and other holiday expenses.
There are other ways to keep financial wellness sound and safe during the holiday season. Unfortunately, some of these suggestions are not commonly known, and a professional can offer worthwhile guidance. Countrywide Pre-Paid Legal Services provides a financial wellness benefit that every employee of an organization can use.
Adding Structure to a Budget
We have a nationwide network of certified counselors who assist people with every day financial issues. These experts can go one step further in helping an individual. Personal budgets beyond Christmas are a critical part of financial wellness. A Countrywide counselor will analyze a budget and examine a plan member’s cash flow. Then, the counselor will make suggestions on where to trim expenses and how to organize everyday finances better. This is the kind of help that a person needs to get through the holiday season and the rest of the year as well.
We Seek Client Input
We offer assistance in other areas, including college debt and dealing with bankruptcy. Countrywide wants to provide the services that precisely fit the needs of a client organization. We ask the organization’s management to help create financial wellness plan. A prospective client is asked to look at our benefit options and select those which they feel their employees can use. The choices will be part of the final plan document, and we provide member service and administration. Clients can expect their employees to be treated with courtesy and individual problems will be addressed immediately.
The holidays are a wonderful time of year, but they can also be a significant financial strain. By following a counselor’s tips for managing debt cards during the holiday season, plan members can enjoy all the festivities without sinking into the red.
If you want to know more about our financial wellness benefits, please feel free to contact us at your earliest convenience. What we provide can get employees through a big spending season and also have personal budgets that meet all kinds of expenses.