The Christmas holiday season is the busiest shopping season in the entire year. Stores will be packed with crowds of shoppers during this time because of the discounts. The mark down discounts occurring nationwide in many stores is the reason why people often make finance mistakes in their holiday shopping. The following are the top 3 finance mistakes that you should take heed to prevent careless spending of your money in the holiday season.
1. Spending Money Without Proper Planning
Many people make the mistake of making impulse purchases when they see a lot of stores offering huge discounts. They spent their money without any budget planning. By the time they spent all they want, they don’t have enough money left to pay the bills. If you get a year end bonus, you must try to control yourself and not quickly use up the money. It is important to create a budget no matter how much money you have in hand to spend in the holiday season.
2. Applying for Loans for Holiday
Some people find they don’t have enough money of their own to spend in the holiday season so they decided to apply for loans that are easy to get approved. Normally, loans that release the money in the same day charges high interest fees and must be paid back within a short time. Examples of this type of loan are payday loans and peer 2 peer loans.
The majority of the people won’t pay back their payday loans on time so the balance has to be rolled over and the interest fees just keep on adding to the amount owed. Even if you know you will get the money to pay back, you should be careful in spending money in the holiday season. This is because there might be an unexpected expenses that arise which prevents you from paying your bill on time.
3. Failing to Make a Priority of Your Expenses
Another mistake that people often make is that they are too greedy and think they can afford all they want with their salaries. You must prioritize what expenses are important and be prepared to let go of some things on your shopping list that are not that important. Making a list of all the stuff you want to buy during the Christmas season will be able to help you to budget properly.
Since Christmas is approaching soon, some stores have already posted about the discounts promotions on different types of products. Doing research on the web allows you to find out which stores are offering a Christmas sale and what items are being discount. If possible, you should use the extra money that you receive in your salary to pay down your bills so that you can be debt free as soon as possible.