3 Tips to Spending Wisely During the Holidays

It’s hard to believe the holiday season is just around the corner.

As joyous as it can be, the season of giving seems to start earlier each year … and apply more pressure on consumers to spend. And it’s easy to become overwhelmed. Oftentimes, January provides a somber wake-up call when we slowly emerge from our Christmas daze to find Baby New Year presenting the bill.

Here are some tips that could help. The earlier you begin to prepare, the easier it can be to manage the extra debt associated with Christmas.

1. Set a budget — It seems obvious, but it’s easier said than done. Draw up a list of expected expenses. Not just gifts, but costs associated with entertaining and travel. Make a budget of what you can realistically afford and keep a running tab of expenses. And above all else, try not to succumb to the inevitable pressure to spend more. The financial advisers at Arkansas Federal can help you draw up a plan.
2. Sales, sales, sales — Keep track of them. They’re out there. Merchants will dangle new products designed to entice consumers into spending. But they also want traffic and volume. They need customers in their stores, be they brick-and-mortar or online. And special bargains will bring them in. And if you’re willing to brave the crowds, Black Friday and the day after Christmas are good times to find marked-down merchandise.
3. Use your savings and credit strategically — If you’re planning on dipping into savings or relying on credit to help fund your holiday, be smart. If you can, use those credit cards that charge the lowest interest. Determine how Christmas will be financed and make a plan to replace any savings or pay off any extra credit built over the holidays. Arkansas Federal offers competitive rates on credit cards that include no annual or over-the-limit fees.

The experts at Arkansas Federal can help. We can help you devise a plan that will ensure your joyous holiday isn’t overshadowed by debt. Let Baby New Year focus on those resolutions instead.