Throughout the years consumers have gotten better and better when it comes to holiday spending. We are all learning to budget in advance to make sure that we only spend what we can afford. We are using more cash and debit cards for our purchases compared to purchasing on credit. However, there are cases in the days leading up to both Christmas and the New Year that many people make last minute mistakes that end up costing them.
The most common end of year money mistakes to actively avoid in the holiday season include:
- Purchasing Last Minute Gifts
This can be considered a huge mistake because last minute gifts rarely fit into our budgets. We often make a rush decision, primarily because we do not want to waste any more time that we do not have. We end up forgetting about the cost of the gift. Always ensure that you have covered all of the people you are purchasing gifts for, that way you can avoid purchasing any last minute gifts.
- Christmas Sales
These sales tend to tempt people to get spend a lot of money they do not physically have. Although it is great to save money on stuff you want, it is important you do not dig yourself into debt because of over spending. Do not get me wrong, I am not saying to ignore all Christmas sales, but I do thin you should take it in moderation.
- Expensive Resolutions
Every year people make New Year Resolutions, most of which tend to go unfulfilled. These resolutions can sometimes conflict with financial goals. People plan to save money, however they end up spending more than they imagined. One of the most common resolutions is to exercise more, and as such people enroll into gyms, which tend to cost them more than they en dup using the membership. Do not compromise your financial goals try to complement it instead.
What do you find is the biggest holiday money mistake have you ever made?