Festive season: Tips to stay out of financial hangover

Festive seasons are always fun. But, you must be financially aware to avoid festive debt. Most of the people use credit cards for buying various things like electronic goods, games, toys, clothing and numerous gifts. But, you must remember that excessive buying causes post-festive financial problems.

However, with some planning and effort you can enjoy the festive season as well as avoid financial troubles.

  1. Become organized

Make a proper list including everybody to whom you usually offer gifts.  Acquaintances grow over time, so sketch a gift list that’s both logical and affordable. In case you are a member of a large family, think of ingenious ways to rejoice without gifts. Instead of offering gifts, ask your friends to bring copies of their preferred recipes and have them prepared at your place. This will be a great idea to party, even while you remain within your budget.

  1. Open a Christmas club account

Make it a point that you set aside some cash every month. You may either open a Christmas club account, or request your bank or credit union to transfer a certain amount into a committed savings account. Creating an auto transfer after every paycheck makes the process easy. With a Christmas club savings account, you’ll be able to save all throughout the year for purchasing gifts during Christmas. Your money gets directly transferred from your paycheck and the bank pays you a small amount of interest every month. Several credit unions and few national banks present these kinds of accounts. However, make sure to validate the fine print prior to signing up. Some accounts may charge a huge penalty if you need to take out the cash prior to the withdrawal date.

  1. Offer homemade gifts

Homemade presents are more personal, economical and better than those bought from the stores. You could prepare mouth-watering homemade goodies and gift them to your friends and relatives. It could be anything like fruit cake, gingerbread, muffins or truffles. Also pay some attention to wrapping and presentation of the gift. Try interesting stuffs like colored cellophane bags, attractive ribbons or small noodle boxes adorned in a festive theme.

 

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