With the major holidays quickly approaching, I thought it might be a good idea to review a few tips about budgeting your money and monitoring your spending habits. While it is quite easy to get caught up in the spirit of giving, you want to make sure the only ones you are giving to are your friends and loved ones rather than your credit card company.
In order to avoid giving the credit card company a great holiday gift in the form of finance charges, keep these simple holiday shopping tips in mind when using credit cards:
2) Use cash instead of your credit card for your holiday gift shopping. Many times, utilizing cash is inconvenient compare to using your credit card, but if you need to hold a hard line on your holiday spending, use cash instead of credit for your purchases.
3) When creating your holiday budget, remember that there are other expenses in addition to gifts – including Christmas cards, postage, decorations, meals, and travel expenses. Make sure to include a portion of your holiday budget for these items as well.
4) Create a “wish” list of the gift items you would like to purchase in accordance with your budget. Having an idea of what you want to purchase for somebody helps reduce the likelihood that you will get caught up in impulse shopping and overspending on your credit card.
5) Remember, there is nothing wrong with saving a little money, either. If you find a great gift for someone at a bargain price, don’t feel obligated to spend a certain amount of money and then go out and purchase something else to meet that person’s gift spending “quota”.
6) Always save your receipts from your holiday spending. Not only will this help you if a gift needs to be returned, you can also keep an eye out for fraudulent purchases and can better keep your budget in check.
7) Use your rewards credit cards, if at all possible. Ideally, you will be paying off your credit card balance as soon as you receive the statement. Therefore, be certain to use your rewards credit cards so you can earn back as much as possible with your card.
Plan your holiday budget and hold the line on it. If you must use your credit card, make sure to avoid carrying a card balance by paying it off in full every month. Above all, use common sense when planning for your holiday spending and make sure to stick to your budget.
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