9 Ways to Avoid Bankruptcy this Holiday Season

Nov 15, 2017

It’s that time of the year when everyone and I mean everyone has to go shopping. According to a survey conducted by the National Retail Federation, consumers will spend an average of $967 on Christmas shopping. The shopping includes gifts for family and friends, decorations and other food items. We have some tips to avoid bankruptcy this holiday season.

Remember, you don’t have to face bankruptcy this year. Follow these 9 ways and save money while you can:

1.    Stay within a Budget

Keeping everything in mind will help setting a realistic budget. You can start by allocating a major part of the budget on gifts. Set a smaller amount of the budget on food and drinks and an even smaller one on miscellaneous expenses.

Think things through before making a budget or you might end up being frustrated in the end. Keep in mind the little things like travel expense and charity.

2.    Keeping a Track of your Spending

Once you have created your budget, start spending but keep a track. There are different ways you can do that and stick to one that you find easy. You can dedicate an account to Holiday spending and can never go overboard this way. You could also create a spreadsheet and keep a track of your spending through that.

3.    Cut back on Extras

Spending on little extras can start to eat up in your budget. Do you really need those fancy tall drinks twice a week throughout December? Is it necessary to take a paid picture with Santa this year too? No, think about it. These little costs amount to a lot, which could have been used to buy another gift.

4.    The “Secret Santa” Method

Secret Santa is a great way of spending less and not losing the Christmas feel. Instead of buying 7 gifts for everyone, you could just buy one. The disadvantage is that you get only one gift in return but you save a lot.

5.    Cheaper Traditions are in!

Traditions are very important for family. If your family enjoys holiday attractions that include paying a lot for a holiday, it’s time to change that! Home based activities, like baking and making Christmas crafts should be adopted. Watch a movie at home, go meet Santa at the mall or just stroll the neighborhood and enjoy the Christmas decorations.

6.    Potluck is the Answer

Making dinner for 30 people is expensive. Plan Christmas dinner ahead and establish a potluck system. Create a WhatsApp group and decide on who will make what for dinner so that you don’t end up with 3 desserts and no drinks.

7.      Rush to the Sale

Black Friday Cyber Monday sales are all the hype these days. Use them! Get the coupons, use the websites and get a head start in holiday shopping. You can get cheaper gifts and even those buy 2 get 1 free offers!

8.    Stop when you are done

Keep a track and check your list. Got everything on the list? Stop now and take a deep breath. Avoid going to shopping malls so that you are not tempted for impulsive shopping.

9.    Start Early

Planning ahead will give you time and a clear head to get things straight. You can start surveying early and go easy on the shopping. This will help you stay organized.