How To Avoid Holiday Debt

American Investment Planners LLC

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(516) 932-5130 / (866) 932-5130

If there's a time of the year where your wallet cries for help the most, it is most definitely the holiday season. Between gifts, parties, decorations and travel if necessary, you probably shell out more cash during the last two months or so of the year than you do the other 10 (give or take). Unfortunately, if you aren't careful, this could also cause you to struggle financially once January rolls around.

Rather than have debt haunt you after the holidays are over, utilize these tips to avoid it from the start:

Create a plan: Start by making a list of all of your holiday expenses (then check it twice!). By having a clear outline of all of the purchases you have to make, it will be much easier for you to stay within your budget. If you already know the exact gifts you'll be buying, get specific and list them as well to avoid spending more on any one person than you planned to.

Make it meaningful: It's the thought that counts! Rather than set out for the most expensive gadgets, jewelry and accessories for family and friends, look for something more meaningful instead. For example, while your sister may really love that designer handbag, consider putting together a collage of all of your favorite memories and have it framed. Even though they may be smaller and not nearly as pricey, gifts that come from the heart are always a win-win.

Set credit cards aside: Your credit card practically screams "use me" when it's just sitting in your wallet or in your purse. Therefore, you may find it's best to just keep it at home. Though you won't have as much money at your disposal to use during your holiday shopping spree, relying only on cash can prevent you from spending more than you can afford.

Shop smart: While searching for coupons and comparing deals at different stores can be time consuming, it will be time well spent. Especially when you're looking for items that are costly, you'll want to be sure you're getting the best bang for your buck, even if it's just a few dollars here and there.

Put your wants aside: It can be easy to add items you want to your shopping cart as you buy for family and friends, but remember that even small gifts for yourself add up. Before you head out, make a promise to yourself that you'll only buy what you set out for, not all of those little extras that are hard to resist.

Although it is considered one of happiest times of the year, we know that the holiday season can be stressful when money comes into play. However, by following the five tips we listed above, you can be on your way to a debt-free holiday!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.