Here is my money advice tip for the month of December. A month of great spending, whether you have the money or not. This is a month when the credit cards get dusted off and come out of the cupboards, if they are not already well worn from their daily use.
Yes, there are a lot of people who just use their credit cards for that extra spending time in their lives, such as Christmas and holidays and then pay them off as soon as the bill arrives. What a lovely situation to be in?
Money Advice Tip 1 …
“SHOP EARLIER: Don’t wait to shop until the last minute.
“People wait too long, and then you’ve got to get a gift – any gift,” said Jason Alderman, director of Visa Inc.’s financial education programs. “So what do we do when we panic? We throw money at it, and we spend too much.”
SET A BUDGET: “You must have a roadmap for your spending on this or else you’re destined to overspend,” Alderman said.
Start with a “micro-budget.”
“Make a list of everybody you’re buying for and you put a dollar amount next to every name, and then you think about what would be relevant gifts within that price range,” Mark said.
“As you’re comparing ads, think about what people want or what’s already on your list instead of reacting simply to a sale,” he added. “Is it the $100 that you’re saving or is it really $300 that you didn’t really intend on spending in the first place?”
STAY FOCUSED: “If you miss the great bargain, don’t just replace it with the next closest thing at full retail price,” Mark said. “That’s one of the most detrimental things you can do to your holiday budget. Once you’ve checked off somebody on your list, be done with them.”
If you spend more than you budgeted, compensate for that.
“If you’re adding a $75 gift, you have to take off $75 from somewhere on the list,” Mark said.
USE CASH: “The best way to stick to your budget and avoid impulse spending is to pay in cash,” said Bill Hardekopf, chief executive of LowCards.com.
“Pulling cash out of your wallet or purse and handing it to someone else is painful and a reminder that the less you spend, the more you can keep,” he said.
PAY BACK QUICKLY: If you must use credit, use the card with the lowest annual percentage rate and don’t let the debt linger.”
http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20111211/BIZ/112110308/-1/rss05
OK, there was more than one tip there but how could I improve on that article?
Money Advice Tip 2
There is a change going on with regard to spending and this is it. Why not consider giving away the items you had bought but did not used. Alternatively you could even consider swapping with others, who also had new unused items in their homes. Who knows whether the gift is new or not anyway?
Money Advice Tip 3
Tell all your friends and family that this Christmas you are going to spend your money cooking something special for them instead of buying items which they may not want in the first place. This could even be in the form of home made truffles and chocolates, which would be very much appreciated.
Go to the link above to get even more money advice.
