How To Avoid Debt During The Holidays with Anthony ONeal
CHARLOTTE, N.C. — As financial concerns grow for Americans struggling with inflation, fears of a recession and the holidays, people are making questionable money moves.
Financial Expert and host of “The Table” on YouTube, Anthony ONeal shares advice on how Americans can celebrate the holidays without setting themselves up for a holiday spending hangover by taking on debt.
Here’s how you can save.
Commit to Cash.
The holidays are a time when a lot of people blow their budget. Between holiday parties, traditions and gift-giving, there are more opportunities to spend money.
It’s tempting to swipe a credit card and deal with it later. But with interest rate hikes, now is the absolute worst time to take on debt.
You will be paying for it long after the fun is over.
There are ways to stretch your budget and earn more money to avoid debt, but first you have to make the decision – “I will not take on debt this holiday season.”
Cut up the credit card and commit to not taking on debt.
Set Your Spending Limit.
Sit down with your budget and tell your money where to go. Because if you don’t tell it where to go, you’ll wonder where it went.
Your spending limit is based on the amount of money you have left over in your budget after needs are taken care of.
Your four walls come first- housing, transportation, utilities and food. From there, make sure your bills are covered- your debt, insurance, etc.
The money you have left over after your needs are covered is your fun money. That’s your holiday budget.
Set Boundaries Based on Budget.
Once you determine how much you can spend on gifts this year, set boundaries based on your budget.
If you can only afford to give your immediate family gifts, tell everyone that you and your family have decided to only give gifts to immediate family this year.
Don’t give gifts to people out of obligation or tradition.
If there’s ever a time to change tradition, it’s right now. The average family is spending an additional $740 a month due to inflation.
No one is going to judge you. You’re helping their budget by opting out of exchanging gifts!
There are so many opportunities to earn extra cash around the holidays. But it requires being inconvenienced.
You can deliver packages, deliver food, deliver groceries to earn extra cash and avoid debt.
Debt may seem like the more convenient option now, but it’s not because you’ll be stuck paying even more for it over time. Be willing to be inconvenienced now so you can pay cash and start the new year off on the right foot.