You now know how to use your existing debt to keep you on budget this holiday season.  There is another powerful tool to help you stay on budget and avoid impulse buys.  Unfortunately it is also one of the most seductive pitfalls, especially during the holidays.  It is so important not to use credit cards during your holiday shopping when the temptation to overspend is even greater than usual.

 

 

[bctt tweet=”These tips will help you keep credit cards from blowing your holiday budget.”]

 

Why Not Use a Credit Card?

You don’t want to be loaded down with more debt after the holidays.  Credit cards will definitely lead to remorse later.  Holiday deals and sales are specifically designed to get you to spend more.  Retailers spend hundreds of thousands of dollars a year just to study how to use sales, product placement, and the store atmosphere to psychologically trick your mind into opening up that wallet.  Don’t let them win with you.

 

How to Avoid Credit Cards

• The first thing you should do is remove your credit cards from your wallet.
• Put them somewhere inconvenient in your home to prevent using them online as well.
• Use cast only when shopping for holiday gifts.
• Put a rule into place that you cannot purchase a gift when not specifically on a gift-buying shopping trip.
• When you do go on gift-buying shopping trips, make sure you’ve already taken cash out of your account at an earlier date/time and leave your debit card at home as well.

Making sure you have no other method of payment besides your allotted cash means you don’t have to rely on will power to keep you from overspending.  It is a built-in safe guard against impulse purchases.

 

Store Charge Cards

The same goes for store cards as for regular credit cards.  Unfortunately, a lot of department stores have the ability to issue you a temporary card for that day plus you don’t even need the physical card to shop the store online.  To avoid going over budget at these stores may require some more extreme measures.

• Do not get a temporary card issued.  If you feel the temptation (or worse, find yourself in line at customer service to get one) I want you to put down everything and leave the store immediately.
• Do not shop these stores online.  This goes especially for Black Friday when the deals could have you filling up your cart as fast as your mouse can click.

These may seem crazy or strict but if you are really serious about saving on your holiday gifts you will do whatever it takes.  I know how tempting it is (Macy’s was getting so much money from me at one point that I had to stop shopping there altogether for years) but you will thank yourself in the long run for resisting.  Also, don’t forget about your debt slip.  If you have your own store kryptonite, try adding the amount you already owe that store onto your slip separate from your total.

See where I’m linking up!

                                                       

Missed the introduction to this series?                 Find out more about #write31day

Click 31 Days of Saving on Holiday Gifts.

You know the importance of your budget and you know that sticking to it is imperative to having a stress and remorse-free holiday.  Then you are in the store getting gifts and you see this awesome toy that isn’t on your list but you know your kid will love and an entire display of $2.00 DVDs.  Oh, and that scarf would be adorable on your sister.  Okay, you’ll just take a quick look at the Dollar Spot… Suddenly you check out and the total is $100 more than you planned to spend and only one item in your bags is actually on your gift list. 

Sound familiar?  There is a way to help combat this type of impulse shopping and it doesn’t involve changing your shopping habits or way of thinking.  Using your existing debt to avoid overspending can help you combat this tendency to impulse buy and make you cognizant of what you’re spending and how it is affecting your overall budget.  Even better, you can continue to use this method long after the holidays have ended.

 

[bctt tweet=”Use this simple method to help you use existing debt to prevent overspending!”]

 

Calculate Your Debt

The first step is to calculate your total debt (all of it).  If you have a mortgage, the remaining balance you have to pay goes on the list.  Student loans?  You bet.  Any and everything that you owe money on (including personal loans) need to be on this list.

• Mortgage
• Student Loans
• Credit Cards
• Personal Loans
• Auto Loans
• Collections Items
• Cell Phones you are Paying Monthly On
• Medical Bills
• Lines of Credit
• Any Other Debt You Can Think Of

Add up all of your debts to find out your total amount of money owed.  If you have never taken the time to do this before, you may be shocked at the number.  That’s great because that means this will be even more effective.

 

Make Your Debt Work for You

Once you have your debt total, write it on a piece of paper.  Put the paper in your wallet.  If you frequently use your debit or credit card, place your debt slip in front of it.  If you typically use cash, place it there.  Use multiples of your debt totals is you don’t have any standard spending style.

 

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Also write this total number on a larger slip of paper to place somewhere visible in your home.  This could be on your fridge, on the back of your front door, or anywhere that you will see it often.  Before you go out shopping, look at the debt total.  Use is as a reminder of why you set your budget and the importance of sticking to it.

When you pull out your payment method at the store, use your total debt as a reminder to only buy what you really need.  Can you really afford more debt?  Even small purchases that are outside of your budget can add up to hundreds in the long run.

Tip:

• When you are first beginning, you may want to look at your debt cards multiple times throughout your shopping trip.  This keeps you from getting to the checkout and then letting the cashier know that you’ve changed your mind on 10+ items.

 

Continue After the Holidays

This is such an effective way to prevent impulse buying that you will want to keep doing it long after the holidays have ended.  If you start to slip back, there is a bonus step you can take to keep the momentum going.

Bonus Step:

Every 3-4 months, reassess your debt.  Again, add everything up and total it.  Write it down and put the total with your payment method(s).  This is effective in one of two ways:

• Your total has gone up and once you realize that it can help strengthen your resolve again.
• Your total has gone down and you will want to continue the method to keep seeing the number drop further.

You already have debt so why not make it work for you?  This is a great way for you to start being in control of your spending and as such, in control of your money.  Check back on Sunday to learn another tool for keeping your budget in check.  And don’t forget to sign up for the 31 Days of Saving on Holiday Gifts newsletter to get tomorrow’s free gift tutorial. (Don’t worry, you don’t get an email every day, just the occasional update with all of your freebies and the most recent article.) **Update** All freebies from this 31 Days List have been moved to the VIP Library for subscribers. Sign up for free here!

See where I’m linking up!

                                                       

Missed the introduction to this series?                 Find out more about #write31day

Click 31 Days of Saving on Holiday Gifts.

Making a plan for your holiday spending is the last step of pre-planning for you holiday gifts.  You’ve already made a written budget but now you need to tell that budget where to go.  You can’t do that if you don’t make a specific plan for what to spend it on.  If you learn nothing else throughout this entire series, I want you to learn this: If you don’t control your holiday spending, your holiday spending will absolutely control you.

Affiliate links may be used in this post. Ordering a product through these links may result in a commission. Read the full disclosure here.

 

[bctt tweet=”Making a plan: If you don’t control your holiday spending, your holiday spending will absolutely control you.”]

 

Brainstorm Ideas

Once you’ve gotten your budget broken down by the people on your list and know your holiday gift options it is time to start brainstorming gift ideas.  Whether you are planning to buy or DIY, you need to develop a list of specific gift ideas for each person to prevent going over budget.  To do this, think about each person’s likes such as:

• His or her favorite things
• Hobbies
• Also his or her sizes (if you know them)

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Batch Gifts

Now that you have an idea of what everyone is interested in, it’s time to think about batch gifts since these will save you the most money.  While normally when we think of batch gifts we think of homemade (which we will cover later in the series), don’t limit yourself to this thinking.  You can buy batch gifts as well.  You can get discounts for buying items in bulk and you can also purchase an item set that you then break down into multiple gifts.  Some examples would be:

• Gift Cards
• Cases of Wine
• Canvas or Art Packs
• Jewelry Sets
• Essentially Any Gift Set (for instance, if a lot of the men on your list are fans of the same sports team, you can purchase a gift set that has a travel mug, t-shirt, and ball cap which you then break up into three separate gifts)

 

Determine Your Ratio of Buy, Thrift, and DIY

To determine what balance of the 3 holiday gifts options is right for you, you must first look at your gift idea list and your budget.  Your ratios could look like:

• Buying 1 gift for each person and DIY-ing the rest
• Purchasing every gift
• An entirely thrifted holiday

Whatever combination you choose, it should reflect not only your gift budget but also your time budget.  You cannot reasonably choose to make all of your gifts when you work full-time, have 3 kids in 3 different extra-curricular activities, and have 2 upcoming trips before the holidays.  You simply don’t have the time to make everything (unless you started back in January).  Be honest with yourself about you availability when deciding your gift giving style.

 

Have Concrete Ideas

You don’t have to strictly adhere to them but you need to have specific ideas written under every name on your list.  I also recommend denoting whether it is B (buying), T (thrifting), or D (DIY).  This will give you a clearly picture of what you need, including available time.  This also gives you a concrete list of items you are looking for so that you can achieve the best deal possible.  I also recommend carrying this list with you all of the time from now until you’ve completed it.  You never want to have to second guess whether you need something or not (including supplies for DIY gifts).  If you buy a gift or the supplies to make a gift, make a note on your gift planner.  This will make it easy to keep track of.

Complete all of the steps laid out in this series and you are well on your way to a budget-friendly holiday.  It is so important to get this foundation in place so that you have a clear goal and also a specific direction for your spending.  Next, we will talk about some tips for keeping your spending on track.  These will help you fight impulse buying and keep your hard-earned money in your wallet!

See where I’m linking up!

                                                       

Missed the introduction to this series?                 Find out more about #write31day

Click 31 Days of Saving on Holiday Gifts.