• Pay cash. When you’ve established your holiday budget, arm yourself with large bills. It’s always a lot harder to break a larger bill than a smaller one. You may find yourself thinking twice.
• Know your credit terms. The average American has eight credit cards. Before shopping, know which has the better interest rate, what your credit limit is and where you are in relation to that, and what type of billing cycle they use. Read the fine print on your statements and try to pay your balance in full!
• Avoid runaway spending. Don’t just stuff the receipts in your purse or pocket. At the end of the day, add them all up and subtract that amount from your holiday budget.
• Make a list and check it often. Be prepared—know what you plan to purchase, where you will make the purchase, and how much you expect to spend. The more organized you are, the more time and money you’ll save.
• Save your pennies. Ever notice how many people will pass a dime they see in the street or on the floor? Become an eagle-eye and collect that change. Save it and add any change left in your pockets or purse at the end of the day. Many people report saving around $1000 a year. That’s a nice chunk of holiday cash!
• Plan for next year. There are many savings options available. The most common is the old-fashioned Christmas Club offered by many banks and credit unions. You deposit a certain amount every pay period and the bank sends you a check in October or November so you can do your holiday shopping. Generally, you aren’t supposed to make withdrawals during the year though there is some leniency. If you have direct deposit, have the money automatically transferred to your Club account. It’s painless on payday, and a whole lot painless next Christmas season!